Law on dual roles rearranges top bank personnel

13:46 | 07/04/2018
In order to comply with the new amendment on holding dual posts in commercial banks and enterprises, leaders of various banks, including LienVietPostBank and Nam A Bank took leave, signalling huge changes in the banks' board of directors (BOD).
law on dual roles rearranges top bank personnel
Commercial banks had to welcome new executives due to the new amendment

On March 28, LienVietPostBank reported appointing a new chairman of the bank’s BOD as part of its annual meeting voting results. Specifically, Nguyen Dinh Thang, the bank’s former vice chairman of the BOD since April 2017 and member of the BOD since 2008, was elected as new chairman.

Previously, before the annual general shareholders’ meeting (AGM), Nguyen Duc Huong, the bank’s former chairman, handed in his resignation because of “health issues.”

Another bank expecting a change in the members of its BOD and Board of Supervisors (BOS) for the term of 2018-2022 was Kienlongbank. Specifically, the posts of chairman, vice chairman cum general director, and head of BOS will have to comply with the new amendment.

New amendment denies dual roles for heads of CIs

Likewise, shareholders at Nam A Bank voted Tran Ngoc Tam, the bank’s former deputy director, as the new general director. Luong Thi Cam Tu, the bank’s former general director, resigned from her post because of “personal reasons.”

Additionally, executive posts at other commercial banks, including SeABank, ABBank, HDBank, and Viet A Bank will likely welcome new members in the coming time since an individual is not permitted to concurrently hold key roles in a commercial bank and an enterprise at the same time.

According to Nguyen Tri Hieu, a Vietnamese financial analyst, the finance and banking sector should expect a whole new crop of bank leaders as a result of the new legal framework.

Law on Credit Institutions, No.47/2010/QH12 dated June 16, 2010, revised on November 20, 2017

Article 34: Cases banned from concurrently holding different posts

3. Director general (director), deputy director general (deputy director) and holders of equivalent titles may not concurrently hold either of the following posts;

a/ Member of the board of directors or members' council or control board of another credit institution, unless this institution is a subsidiary of the credit institution;

b/ Director general (director) or deputy general director (deputy director) of another enterprise.

By Van Linh

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