After the governance problems occurred at the No. 1 construction contractor in Vietnam Coteccons, Ricons has made its own preparations and considered this as a preparatory step to “launch” to the big sea, ie listing in 2021.
Ricons’ extraordinary General Meeting of Shareholders on the afternoon of October 10. (Photo: L.H)
This afternoon (October 10), Ricons Construction Investment Joint Stock Company conducted an extraordinary 2020 General Meeting of Shareholders to approve a number of contents to meet the sustainable development of the business as well as ensure the interests of shareholders during the period.
The new steps of Ricons took place in the context of a conflict between Coteccons Construction Joint Stock Company (Ticker: CTD) and major shareholder Kusto, which has always been a hot spot at the AGMs in recent years.
As one of the members of the “Coteccons Group” ecosystem and 14.3% capital owned by Coteccosn, the Kusto side used Ricons as an illustration of a conflict of interest when some members of the Board of Directors and Coteccons’s Board of Directors concurrently holds key management positions at Ricons. In which, Mr. Tran Quang Quan, former Deputy General Director of Coteccons, holds the position of Chairman of the Board of Directors of Ricons.
At the same time, Kusto said that in addition to the role of a subcontractor of Coteccons, Ricons is also a competitor in the same segment with the No. 1 big man in the construction industry.
While Coteccons is immersed in conflicts, the remaining members like Ricons are constantly growing. The contents presented at this Ricons meeting can be considered as the first preparation step of Ricons after the problems of governance occurred at Coteccons.
Veto people from Coteccons to the Board of Directors
Ricons’ extraordinary General Meeting of Shareholders has approved a new charter with many important details. In particular, the company will strictly regulate the percentage of shares to nominate candidates to the company’s Board of Directors and Supervisory Board.
Specifically, a shareholder or a group of shareholders holding from 10% to less than 20% of the total number of voting shares can nominate a candidate to the Board of Directors, instead of just 5% to less than 10% as prescribed.
In addition, the new charter allows the company to have one or two legal representatives, while the current charter stipulates that the Chairman of the Board of Directors is the legal representative of the company.
In addition, the new charter also clearly stipulates that the election of members of the Board of Directors and the Supervisory Board is carried out by direct voting, not cumulative voting.
For example, a member of the Board of Directors only wins the election when there are 65% of the total votes of the voting shareholders present in person or through an authorized representative present at the General Meeting of Shareholders, or from 51% or more in case of collecting written opinions of shareholders.
Provisions on share ownership rate to nominate candidates for the Board of Directors. (Source: Thu Thao summarizes)
Provisions on share ownership rate to nominate candidates for the Supervisory Board. (Source: Thu Thao summarizes)
This congress also voted to replace Mr. Nguyen Ba Duong with a new Board Member. The nominee is Mr. Doan Phan Trung Kien (born in 1988 Bachelor of Finance and Accounting), assistant to the Board of Directors of Coteccons.
Previously, Mr. Doan Phan Trung Kien held various positions: Head of financial analysis team of KPMG Vietnam, Deputy Head of Investment Department of Mobile World Investment JSC (Ticker: MWG), Head of Investment Department of Sen Technology JSC. Red.
However, with a approval rate of more than 16%, shareholders did not approve this content. Thus, the Ricons Board term 2015 – 2020 includes 5 members: Mr. Tran Quang Quan (Chairman), Mr. Le Mien Thuy (Member of the Board of Directors, General Director), Mr. Nguyen Sy Cong, Mr. Tran Kim Long and Mr. Nguyen Trung Tin.
Listing at the latest in quarter II /2021
One of the other important contents approved by shareholders at this meeting is that Ricons will change its name from Ricons Construction Investment JSC to Ricons Construction Investment Group JSC (Ricons Group), develop Ricons according to corporation with the goal of becoming the third largest construction contractor in Vietnam.
This orientation was announced by Ricons in the Annual Report of 2019. Accordingly, the Ricons Group ecosystem includes brands: Ricons (general contractor), Riland (real estate investment and development), Rihomes (floor real estate transactions under Riland), Rilex (rental workspace in Riland), Risa (real estate management division of Riland), Ricommerce (commercial block of Riland), QuiHub (warehouse and house rental workshop).
The Ricons Group ecosystem. (Source: Ricons’ 2019 Annual Report)
Earlier in early June 2020 Ricons changed its brand identity by changing the “Conteccons Group” in the logo to “Since 2004”.
The above changes to serve the process of listing Ricons’ shares in 2021. According to Chairman Tran Quang Quan, “these changes are like preparing to launch into the big sea and this is the first job to launch this ship.
Listing documents are in the process of review and awaiting approval from the State Securities Commission. Ricons’ fastest listing time is January 2021 otherwise we will try the fastest in the first quarter and at the latest quarter II /2021 “.
After the allegations of a conflict of interest from major shareholder Kusto, Mr. Nguyen Ba Duong applied for resignation as a member of the Board of Directors Ricons on June 22.
Recently, Mr. Nguyen Ba Duong has also resigned from the position of Chairman of the Board of Directors of Coteccons, which means his withdrawal from the No. 1 construction contractor in Vietnam, built by himself for about 18 years.
On October 6 Mr. Nguyen Ba Duong sold more than 1 million CTD shares, thereby reducing his ownership at Coteccons from 5.7% to 4.2%.
Mr. Bolat Duisenov, CEO of Kusto is the replacement for Mr. Nguyen Ba Duong’s position at Coteccons.
Parallel to the chain of events above, Coteccons’s staff has fluctuated continuously in recent days.
Information that Mr. Ly Xuan Hai, former General Director of Asia Commercial Bank (Ticker: ACB) as authorized representative of Mr. Talgat Turumbayev, Member of the Board of Directors of Coteccons, staff from Kusto, cannot help but cause curiosity to the investor in new directions of Coteccons after the founder leaves.
This morning, Coteccosn’s Board of Directors has also appointed new Deputy General Directors, including Mr. Tran Tri Gia Nguyen (Michael Tran), former Deputy General Director of Hoa Binh (Ma: HBC) and Mr. Pham Quan Luc, former Vice President. General Manager Ricons.
In addition, Coteccons also continuously recruits human resources in a series of positions such as: Secretary of Executive Director, Senior Analyst in Real Estate Investment Analyst, Internal Auditor, Construction Accountant.
Source: vietnambiz.vn – Translated by fintel.vn
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