Song Da Urban and Industrial Zone Development and Investment Joint Stock Company (Sudico) on April 16 dismissed members of the management board, including chairman Phan Ngoc Diep.
EGM declared legal by management board
The extraordinary general meeting was denounced by wife of sacked board member Phan Ngoc Diep as being illegal as she claimed that the company had not gone through the necessary legal procedures prior to hold it. Her calls were ignored.
Newly-elected chairman of Sudico, Ho Sy Hung, dismissed Diep's complaint, claiming, “This extraordinary meeting which was called by Sudico’s management board is legal and lawful,” on the morning of April 16.
“Sudico’s management board submitted the relevant documents to Ho Chi Minh City Stock Exchange’s Central Securities Depository for permission. We have proposed this meeting. Sudico in general and the management board in particular will be responsible for this extraordinary meeting’s legality”, Hung said.
After the secretariat had checked the ballots, 74.8% of shareholders were entitled to vote.
The main aim of this extraordinary meeting was “to stabilise management measures, to improve the operations and productivity of the company and to ensure Sudico’s common interests and those of its shareholders.”
After four hours of discussing, three board members were dismissed.
Chairman Phan Ngoc Diep, Vi Viet Dung, CEO, and Dang Hoang Quang, commission of direction board were dismissed with over 90% in favour of the removal of these board members. The meeting agreed to find suitable replacements, with Do Van Binh was nominated by shareholders, and Ho Sy Hung and Pham Van Viet recommended by Song Da Corporation’s steering committee.
On April 12, Ho Chi Minh City Stock Exchange issued a warning over Sudico's shares due to the fact that its parent company had recorded losses in 2011 of VND82.5 billion (USD3,953,042.6)
The three men were dismissed for misconduct, but the details of their actions remains unclear until Subdico make a public announcement. However, according to rumours, Phan Ngoc Diep was responsible for a variety of serious management blunders, including losing tens of billions of VND in the My Dinh-Me Tri project, and thousands of billions of VND due to inaccurate accounting during Subdico’s privatisation process. Vi Viet Dung and Dang Hong Quang were accused of being remiss in their duties, which unintentionally created the ideal conditions for Diep to breach management regulations.
At the close of yesterday’s stock exchange, Sudico shares rose 5%, closing at VND40,000 (USD1.9) per share.
