GTNFoods JSC on Saturday dismissed two members from the board of directors, causing disturbance among shareholders at the firm’s annual meeting. This year’s meeting was also the first one in which Vietnam Dairy Products JSC (Vinamilk) was presented as the biggest shareholder of the company, holding more than 40 per cent of GTNFoods capital.
GTNFoods had previously announced major shareholder West Ocean Invest JSC suggested to remove two independent members from their positions on the board of directors.
The officers that were dismissed were Chew Mei Ying and Michael Louis Rosen.
West Ocean Invest had also nominated two new members to relieve the foreign members on the board of directors.
But Ying and Rosen opposed the firm’s proposal.
Ying said she and Michael represented the benefits of all shareholders. According to Article 151 of the Law of Enterprise, a member of the board of directors may not represent a specific shareholder.
Therefore, West Ocean Invest had ignored the benefits of minor shareholders by making the proposal, she said.
The proposal accidentally made shareholders misunderstand the obligation of the board of directors as they thought the board would work on behalf of major shareholders only, not that of all shareholders, she added.
The presence of Ying and Rosen would help improve GTNFoods’ performance, Ying added.
In response, the law firm representing GTNFoods at the meeting said any shareholder holding more than 10 per cent stake for at least six months had the right to propose the dismissal of existing board members.
The opinions had been sent to the board at least five days prior to the meeting in accordance with existing regulations, so they were eligible, it said.
The proposal on the dismissal of Michael Louis Rosen and Chew Mei Ying was disapproved by 44.58 per cent of all shareholders while the rest of them voted for the decision.
New board members were approved to join the board of directors by only 55.31 per cent of all shareholders.
Vinamilk welcomed to the board
Vinamilk was suggested to join the board of directors at GTNFoods and the idea was highly appreciated by shareholders and members of the board.
According to GTNFoods chairman Ta Van Quyen, it was up to Vinamilk to decide whether to buy more shares in GTNFoods or not.
Vinamilk holds nearly 41.7 per cent in GTNFoods now. The board of directors’ member Nguyen Hong Anh said he expected Vinamilk to make greater contribution to the development of GTNFoods.
In 2019, GTNFoods targets VND3.35 trillion (US$144 million) in total revenue, up 11 per cent year on year. Its post-tax profit is projected to reach VND200 billion, up 92 per cent year on year.
In 2018, the company recorded VND3 trillion in total net revenue, fulfilling 90 per cent of the full-year plan. But post-tax profit was only VND105 billion, accounting for 35 per cent of the year’s plan.
GTNFoods is listing on the Ho Chi Minh Stock Exchange as GTN. The company shares rose 2.8 per cent to end last Friday at VND18,300 ($0.78) per share.