Technology firm FPT's chairman Truong Gia Binh delivers a speech at the firm's annual shareholder meeting (Photo courtesy of FPT Corporation) Hanoi (VNS/VNA) - Companies in Vietnam are treading on new ground as for the firsttime ever they must hold annual shareholder meeting online.
The COVID-19pandemic means many businesses either can't, or are reluctant to, meetface-to-face.
So in afirst for Vietnam, businesses must now hold crucial meetings via online portals.
This hasleft some questioning the legality of the voting procedures while others areholding out to see if the pandemic eases before fast-approaching deadlines.
Technologyfirm FTP has already conducted proceedings using a web platform. Propertydeveloper Novaland and Sai Gon Thuong Tin Commercial Joint Stock Bank(Sacombank) are among a number of firms hoping to follow suit.
But othersare holding fire, hoping by the time the June 30 deadline comes around, thepandemic will have eased to allow face-to-face meetings in a safe environment.
If they missthe deadline, they will be penalised.
CenturySynthetic Fiber Corporation (HoSE: STK) strategy director Nguyen Phuong Chiquestioned the logistics of holding meeting online. As no precedent has beenset before, she is concerned there may be issues in the future over thelegality of voting procedures.
Auditingfirm Deloitte’s chairperson Ha Thu Thanh, said it was necessary for the boardof directors to gain approval from shareholders and corporate charters wereadjusted accordingly.
Onlinemeetings would force companies to upgrade technology and save expenses, shesaid.
Companieswould have to make sure meetings held remotely did not suffer unforeseentechnical issues and interaction between shareholders and the steering board iscrystal clear to avoid confusion.
The numberof attendees would increase and the results of voting would be unpredictable,Thanh said.
But accordingto Phan Duc Hieu, Deputy Director of the Central Institute for EconomicManagement (CIEM), these are issues that can be resolved.
He said theLaw on Enterprise stated a shareholder could choose whether they would bepresent at the meeting or not but their rights and benefits would be stillprotected, he said.
Ashareholder was considered “participating at the meeting” if he was able tosubmit his votes on electronic platforms such as fax machine, emails ande-voting, he said.
That meant acompany did not have to change its corporate charter and ask for shareholders’approval in order to organise an online or virtual annual meeting because everyshareholder had the right to choose whether to attend the meeting personally,Hieu said./.
The COVID-19pandemic means many businesses either can't, or are reluctant to, meetface-to-face.
So in afirst for Vietnam, businesses must now hold crucial meetings via online portals.
This hasleft some questioning the legality of the voting procedures while others areholding out to see if the pandemic eases before fast-approaching deadlines.
Technologyfirm FTP has already conducted proceedings using a web platform. Propertydeveloper Novaland and Sai Gon Thuong Tin Commercial Joint Stock Bank(Sacombank) are among a number of firms hoping to follow suit.
But othersare holding fire, hoping by the time the June 30 deadline comes around, thepandemic will have eased to allow face-to-face meetings in a safe environment.
If they missthe deadline, they will be penalised.
CenturySynthetic Fiber Corporation (HoSE: STK) strategy director Nguyen Phuong Chiquestioned the logistics of holding meeting online. As no precedent has beenset before, she is concerned there may be issues in the future over thelegality of voting procedures.
Auditingfirm Deloitte’s chairperson Ha Thu Thanh, said it was necessary for the boardof directors to gain approval from shareholders and corporate charters wereadjusted accordingly.
Onlinemeetings would force companies to upgrade technology and save expenses, shesaid.
Companieswould have to make sure meetings held remotely did not suffer unforeseentechnical issues and interaction between shareholders and the steering board iscrystal clear to avoid confusion.
The numberof attendees would increase and the results of voting would be unpredictable,Thanh said.
But accordingto Phan Duc Hieu, Deputy Director of the Central Institute for EconomicManagement (CIEM), these are issues that can be resolved.
He said theLaw on Enterprise stated a shareholder could choose whether they would bepresent at the meeting or not but their rights and benefits would be stillprotected, he said.
Ashareholder was considered “participating at the meeting” if he was able tosubmit his votes on electronic platforms such as fax machine, emails ande-voting, he said.
That meant acompany did not have to change its corporate charter and ask for shareholders’approval in order to organise an online or virtual annual meeting because everyshareholder had the right to choose whether to attend the meeting personally,Hieu said./.
VNA
