Shareholders’ meetings to proceed as usual, say firms

Saturday, Mar 07, 2020 07:43

Shareholders attend a meeting of KinhBac City Development Holding in Bac Ninh Province. — Photo

Firms said shareholders’ meetings were to proceed as scheduled in March and April despite concerns over the outbreak of the novel coronavirus (COVID-19).

A number of firms have announced the dates for their next shareholders’ meetings, including construction firms Vimeo (March 10), Vinaconex 9 (March 26) and Dat Phuong JSC (March 28).

Other firms, such as Hanoi Electro-mechanical Manufacturing JSC (HEM), Vietnam Water, Sanitation and Environment JSC and Vietbac Mining Industry Holding Corporation said their shareholders’ meetings would take place in April.

Meanwhile, a number of firms are preparing for different scenarios including holding meetings online with shareholders.

“Our shareholders’ meeting is set to take place in April. There is time yet to decide how we will do it. Depends on how the virus outbreak develops, we may consider doing it online,” said Do Huy Hung chairman of the board of La Hien Cement JSC.

Last year, the cement maker’s sales reached VND689 billion (US30 million), a slight decrease compared to the previous year. Profit, however, saw an increase of 22 per cent or VND38 billion as a result of reduced cost of financing.

A representative from HEM said while its shareholders’ meeting was likely to proceed as usual, the firm would also consider having it online should the virus outbreak worsen.

HEM's financial report showed VND82 billion in profit-after-tax for 2019, a 16 per cent increase year-on-year, mostly from the firm’s investments in stocks and other financing activities.

Viet Nam’s 2014 Law on Enterprises stipulates that in the scenario which numerous shareholders’ meetings are being held in different places, the location of the meeting attended by the chairman of the board will be chosen as its official location, which under the law must take place within Viet Nam’s territory.

The 2014 law also allows shareholders to attend meetings online, to cast their votes online or to send in their votes via mail, fax or email. However, there have been instances in which firms failed to count those votes, according to Government watchdogs. — VNS

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