Board member of construction giant Hoa Binh steps down

A resolution approving his resignation was posted on the company’s website on Tuesday, and it says it will be formally approved at the company’s next annual general meeting.

He had a running battle with Le Viet Hai, the chairman.

In December the board had approved Hai’s resignation and the appointment of Phu as his replacement.

Hai’s son Le Viet Hieu was named CEO.

But Hai, who has a 17.14% stake in the company, claimed he would remain chairman of the Founders Committee, which would advise the board of directors and executives.

But Phu dismissed the claim, telling the media the Founders Committee does not have the authority to veto decisions made by the board.

Besides, Hai had to resign because some board members had discovered "financial wrongdoing" by him, he said.

Hai then fought back, calling for an extraordinary board meeting on December 29 to discuss postponement of the decisions approving his resignation and making Phu the new chairman and his son the CEO.

He told the Ho Chi Minh Stock Exchange that the decisions had to be postponed because there were issues with the operation of the Founders Committee.

The Vietnam International Arbitration Center ruled in January that Hai remained the company’s chairman and the company should postpone all the decisions.

Hoa Binh Construction is listed on the Ho Chi Minh Stock Exchange and has a charter capital of VND2.74 trillion (US$116.1 million).

It plans to expand internationally within the next decade, and achieve $20 billion in revenues and nearly $1 billion in profits by 2032.