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Tuesday, July 16, 2024

Hoa Binh’s leadership struggle comes to an end

By V.Dung

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HCMC – The struggle for the seat of board chairman of Hoa Binh Construction Group since late last year has begun showing signs of ending as one of two individuals involved has left, reported the local media.

Hoa Binh has announced a resolution of its board approving the resignation of Nguyen Cong Phu as board member, with effect from February 13.

The company also approved Phu’s authorization of Le Viet Hai to attend, discuss, vote at all meetings and obtain voting of the board via written documents or other forms, pending the 2023 general meeting resolving Phu’s resignation letter.

The leadership struggle started in December 2022 when Hoa Binh issued Resolution 50 approving the resignation of Le Viet Hai to ensure his son would be able to take up the post of CEO under the prevailing rules.

Resolution 51, issued by the firm on the same date as Resolution 50, appointed Nguyen Cong Phu as board chairman replacing Hai, effective from January 1.

However, on December 31, 2022, this company issued Resolution 53 suspending the approval of the resignation of Hai as board member and of the appointment of Nguyen Cong Phu as board chairman.

Meanwhile, other board members, including Phu, rejected the validity of Resolution 53.

In the middle of January 2023, Hoa Binh announced a decision of the HCMC Department of Civil Judgement Enforcement requesting the firm to cease implementing Resolutions 50, 51 and 53 until a final decision or judgment of the Arbitration Tribunal settles the above dispute.

Till now, Nguyen Cong Phu’s resignation from the board means that Le Viet Hai continues holding the position of chairman and legal representative of Hoa Binh.

Like other construction companies, the high prices of input construction materials and many other expenses have caused many difficulties for Hoa Binh, resulting in an accumulative loss of VND1,140 billion in 2022.

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