Eximbank is postponing its annual shareholders’ meeting once again, after the first postponement less than a month ago. The annual meeting, which was scheduled for April 24 and then May 26, has been postponed to June 2019, according to the bank’s newest press release.
Eximbank has been the source of a great deal of negative publicity recently, from its human resource reshuffles due to misconduct and embezzlement through weak earnings to constant restructuring, enormous non-performing loans, and fluctuating stock.
The former chairman and director of Eximbank stepped down just a few days before the second shareholders’ meeting. The bank then recently appointed Cao Xuan Ninh, former director of Vietcombank, as the new chairman and Nguyen Canh Vinh as the new general director. The duo is expected to make valuable contributions and bring great diversity of thought and experience to the board.
|Cao Xuan Ninh, Eximbank's new chairman |
The meeting could be a precious opportunity to improve the bank’s reputation as well as to ensure that shareholders can directly express their views to the board and make proper decisions related to further strategic activities. “However, a conflict has arisen between the different classes of stakeholders. A number of shareholders who hold a large amount of important shares did not show up as scheduled,” a bank insider noted.
On the other hand, despite the resignations of Eximbank’s top leaders and the appointment of an experienced chairman and director, the bank faces a savage backlash from its shareholders.
|The second postponement of the Eximbank shareholders’ meeting. Source: tuoitre.vn |
This latest delay is a clear sign that Eximbank does not have enough votes or shareholder support to push through their resolutions. It is also a sign of investors' dissatisfaction with the bank’s careless board amid an ever-growing list of failures and losses.
It is noted that the bank has to cope with a large amount of non-performing loans, which reach $236 million at Vietnam Asset Management Company (VAMC).