Second shareholders' meeting of Eximbank fails

The appointment of Nguyen Xuan Ninh as the chairman of Eximbank caused a huge stir. Source: vietnamnet.vn

After the failure of its first shareholders' meeting (AGM) in late April, Vietnam Export Import Commercial Bank (Eximbank) organised a second meeting on June 21 with the participation of nearly 94 per cent of its shares.

Contrary to forecasts of a smooth session after prolonged personnel crisis,the second meeting stalled over arguments over the legitimacy of the assigment of the new chairman of Eximbank's management board, Cao Xuan Ninh.

Objecting shareholders' doubts, Ninh said the State Bank of Vietnam’s (SBV) Banking Supervision Agency has affirmed that the bank’s proposals for the general meeting are in line with local regulations.

“We will set private meetings to clear up the queries of shareholders,” Ninh said after seeing many hands raised for comments.

A large number of shareholders disagreed with the proposal because all problems should be openly discussed, especially those arising at a shareholders' meeting, the main purpose of which is the open discussion of issues with shareholders.

A representative of Sumitomo Mitsui Banking Corporation – Eximbank’s strategic partner holding 15 per cent of its capital – stated after the AGM that during the two-hour argument, the shareholders did not believe the management board, including chairman Cao Xuan Ninh and authorised general director Nguyen Canh Vinh.

Ninh said that he was sorry for Eximbank’s internal problems, which relegated the bank from one of the top five leading local banks to the three weakest. He also asked for comments to adjust the bank’s regulations to continue the shareholders' meeting. However, the requirement was not approved.

Eximbank set a growth target of 30 per cent or VND1.077 trillion ($46.82 million) in pre-tax profit, and raising its total asset value to VND181 trillion ($7.87 billion). The mobilised capital is expected to hit VND143.5 trillion ($6.24 billion).

In the morning of April 26, Eximbank organised the first shareholders' meeting, but the meeting had to be halted due to low attendance.