Banks are expected to make major changes in the selection of their top personnel for the upcoming term from 2018 to 2023 to meet the Government’s new regulation.
Under the revised Law on Credit Institutions that took effect from early this year, leaders at banks are not allowed to hold management positions in enterprises. Accordingly, chair of the board of directors (BoD), chair of the member board, and general director of credit institutions cannot be the chair and member of BoD, or chair and member of the board of members, general director, deputy general director, or other equivalent titles in any other enterprises.
The new regulation took effect on January 15; however, under the transitional provision of the law, these leaders may continue to concurrently hold the two positions until the end of their term, or the expiry date of the appointment at the bank.
Owing to the regulation, many bankers have to choose whether to stay at the bank or switch to a business. Many bank leaders are in the situation and until now, some of them officially made their choice, such as Duong Cong Minh (Sacombank), Do Quang Hien (SHB), Do Minh Phu (TPBank) or Thai Huong (BacABank). Many other leaders in Kienlongbank, Techcombank, SeABank, ABBank, HDBank and VietA are still holding positions in both places.
Leaders of credit institution said they would abide by the rules and make the most appropriate choices. However, according to observers, the compliance must be postponed for some more time; the earliest possible time will be the annual shareholders’ meeting in March-April this year. Therefore, in the near future, there will be a strong movement of personnel in banks entangled in this regulation.
Besides meeting the Government’s new regulation, many banks will also have to find new senior personnel as the current term of the banks’ management positions will end in the next few months.
Vietcombank was the latest to announce that its annual general meeting (AGM) will be held on April 24, where it will submit a proposal for members of the BoD and the supervisory board (SB) for the 2018-2023 period.
Before Vietcombank, many banks also announced that they would decide the important issue of personnel for the next five years at their AGMs.
LienVietPostBank will hold the general meeting on March 28 in HCM City, where it will change the BoD and SB in the next five years.
According to the resolution of the bank’s BoD, eight members for the BoD and three members of the SB will be selected for the new term.
This year, BacABank also enters the new term, and the bank has consulted shareholders about the plan to elect the BoD and the SB with the intention of having five members in the BoD and three members of the SB.
ACB will also hold its shareholders’ meeting this year to elect its management board for the 2018-2023 term. Currently, the bank has completed the nomination and self-nomination list.
Another bank, Kienlongbank, is also re-electing its BoD and the SB for the 2018-2022 term. This time, the bank plans to collect the shareholders’ opinions and will hold a meeting in April.
PVcomBank has not announced the shareholders’ meeting plan for this year, but 2018 is also the time when the bank enters its new term.
Some banks have not yet reached the time to change the BoD and the SB, but they will elect additional staff during the AGMs. For example, the Military Bank plans to hold a shareholders’ meeting on March 29, with the additional election of one member to the SB for the 2014-2019 term. Eximbank will also additionally elect two members to the BoD for the 2015-2020 term in AGM due on April 27.