Foreign shareholder Mitsui asks Eximbank for extraordinary general meeting

July 15, 2020 | 20:54
Mitsui Banking Corporation – the foreign strategic partner holding 15 per cent stakes – has just requested Eximbank to convene the second extraordinary general shareholders' meeting 2019 before the second annual general meeting 2020 scheduled for July 29.

In a document sent to Eximbank's Board of Management and State Bank of Vietnam Governor Le Minh Hung, Mitsui Banking Corporation (SMBC) explaining that its requirement is based on a recent announcement by Eximbank that it could not held meetings due to a lack of shareholder participation.

Previously, Eximbank decided to hold the first extraordinary general meeting (EGM) 2019 on June 30, 2020 after postponing this event since 2019 because the number of shareholders attending the meeting was below the requisite minimum 65 per cent.

The EGM 2019 also could not be convened on June 30 afternoon when only 52 per cent of shareholders participated.

Likewise, the first annual meeting (AGM) 2020 also failed on the morning of the same day because only 133 shareholders participated, holding 215 million shares in total, that is, only 17.54 per cent of the shares.

foreign shareholder mitsui asks eximbank for extraordinary general meeting
The EGM 2019 could not be convened on June 30 as not enough shareholders showed up

In its latest announcement, Eximbank mentioned organising the second AGM 2020 on July 20 but it has not mentioned the second EGM.

SMBC, meanwhile, claims that the second EGM must be organised before the AGM, according to the bank’s internal regulations which state that the second meeting must be held within 30 days if the first meeting failed.

SMBC cited that the most important issues to be solved at the EGM are the outstanding issues of the 2019 financial year which have been delayed for a long time.

2020’s issues and the term of the Board of Management in 2020-2025 can be discussed only after all issues of the 2019 financial year are cleared, SMBC claimed.

As a strategic shareholder of Eximbank, SMBC has many times requested Eximbank to convene an EGM before the official AGM, as regulated.

The outstanding issues which SMBC required to be brought to the meeting were the recent dismissal of Yasuhiro Saitoh from the position of chairman of the Board of Management, voting for members, and reducing the scale of the Board of Management.

Several months ago, the State Bank of Vietnam’s inspectors cited that the missing of the EGM 2019 of Eximbank was a violation by the members of the Board of Management. Those who did not approve the plan to hold the EGM received personal administrative fines.

By Bich Ngoc

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