Shareholders’ meetings to proceed as usual, say firms

Hanoi (VNS/VNA) - Firms said shareholders’ meetings were to proceed as scheduled in March and April despite concerns over the outbreak of the novel coronavirus-caused acute respiratory disease (COVID-19).

A number of firms have announced the dates for their next shareholders’ meetings, including construction firms Vinaconex 9 (March 26) and Dat Phương 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 689 billion VND (30 million USD), a slight decrease compared to the previous year. Profit, however, saw an increase of 22 percent or 38 billion VND 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 82 billion VND in profit-after-tax for 2019, a 16 percent increase year-on-year, mostly from the firm’s investments in stocks and other financing activities.

Vietnam’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 Vietnam’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./.