Photo: Duc Anh
Letter from Board member to SBV claims Board of Directors is inefficient.
A member of the Board of Directors (BoD) of the Vietnam Export Import Commercial Joint Stock Bank (Eximbank) has proposed the current BoD be dismissed due to its inefficiency.
Mr. Dang Phuoc Dua, who represents a group with a 10.3 per cent stake, sent a letter to the State Bank of Vietnam (SBV) and relevant authorities on July 1.
In early June a group with a 11.71 per cent stake demanded some of the current BoD members be dismissed.
Mr. Dua wrote that the current Board is not working effectively and not respecting shareholders. Some members hold none or less than 0.1 per cent of shares. They are not sufficiently responsible, which has led to a decline in financial activities and a loss in market share.
He also wants to allow shareholder groups with more than 10 per cent to be able to nominate representatives to the Board, to be voted on at the next meeting.
Eximbank announced on June 30 an extension to the deadline to receive nominations to the Board, from June 30 to July 14. Six representatives had nominated, the bank announced on July 4, representing groups holding more than 10 per cent, and included Mr. Dua, Mr. Nguyen Trung Kien, Mr. Pierre Erik Theron, Mrs. Nguyen Thi Xuan Loan, Mr. Diep Quang Nhan, and Mrs. Ngo Thu Thuy.
There has been no final decision made on the addition of one or three delegates to the current Board, which currently has nine members.
The bank planned to organize an extraordinary meeting in August. The first two annual Board meetings earlier this year failed to gain a quorum (65 per cent of shareholders). A third Board meeting must be called before an extraordinary meeting can be held.
Eximbank holds a significant market share in the export and import sector, with an extensive network throughout the country consisting of a head office, 44 branches, and 163 transaction offices, and it has one subsidiary and one joint venture. Its main shareholders are the Sumitomo Mitsui Banking Corporation, with 15 per cent, and Techcombank, with 8.19 per cent.
The bank has more than 6,100 employees and is listed on the stock market (EIB), with total charter capital of VND12.4 trillion ($556 million). It recorded accumulated losses of VND820 billion ($36.8 million) in 2015 with net profit in 2014 and 2015 of VND340 billion ($15.3 million) and VND40 billion ($1.9 million), respectively.
Mr. Dua was appointed Deputy Chairman of Eximbank’s BoD in March 2014 and was a former consultant to the bank’s BoD from December 2015 but resigned last May.
Last year Eximbank postponed its annual board meeting three times, to the end of July. In December an extraordinary meeting was held in order to vote for the BoD but a representative of a main shareholder group was been selected. Questions were then raised about the vote’s transparency.