Strategic shareholders of SMBC request Eximbank to hold an extraordinary meeting before the annual meeting

16-Jul-2020 Intellasia | Tri Thuc Tre | 6:02 AM Print This Post

The Sumitomo Mitsui Banking Corporation (SMBC) shareholder had just sent a document to the Board of directors of Vietnam Export Import Commercial Joint Stock Bank (Eximbank) and the State Bank of Vietnam (SBV).

According to this document, SMBC referred to the recent disclosures of information about Eximbank’s ineligibility to conduct the Annual general Meeting of Shareholders 2020 and the Extraordinary general Meeting of Shareholders for both meetings on June 30 because of not enough quorums. In its latest announcement, Eximbank mentioned the second convening of the annual general meeting of shareholders (on July 29) but did not mention the second convening of the extraordinary meeting.

Therefore, SMBC considered that the reconciliation of an annual general meeting of shareholders under the provisions of Article 33.2 of Eximbank’s charter was also applied to the extraordinary session. Particularly, in case the quorums of the first meeting were not sufficient, the bank could convene for the second time within 30 days from the intended date of the first meeting.

Concerning this issue, SMBC shareholders said that the extraordinary general meeting of shareholders was to address the problems of fiscal in 2019 but had not been resolved because of long-delayed time. Therefore, the extraordinary meeting needed to be conducted in advance to resolve issues of the 2019 fiscal year before considering the problems of 2020 and the 2020-2025 term. That was clearly stated by the largest shareholder on Eximbank’s legal papers.

Previously, Eximbank’s first 2020 annual meeting on June 30 morning could not be conducted because the percentage of attending shareholders accounted for only 17.54 percent ownership of voting shares. There were not enough quorums for the bank to hold the meeting as prescribed. On the afternoon of June 30, the first extraordinary shareholder meeting could not also be conducted for the same reason, when the attendance rate was only 51.92%.

In which the extraordinary meeting was held at the request of two groups of shareholders of Eximbank, including strategic shareholder SMBC holding 15 percent of capital in Eximbank and group of shareholders of Ngo Thi Thuy containing 10.36 percent of ordinary shares (as of September 2019). At the request for Eximbank’s extraordinary shareholder meeting, SMBC mentioned two issues to discuss. Those were the request to dismiss Yasuhiro Saitoh (currently the Chair of Eximbank’s Board of directors when he held this position right before the shareholders’ meeting) and reduced the number of members, voting for the Board of Trustees.


Category: Finance, Vietnam

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