New move after a company was fined because the father was Chairman and the son was General Director

(NLĐO) - Notably, this person only took over the position of General Director on December 3, 2024.

City Auto Joint Stock Company (stock code: CTF) announced a resolution of the Board of Directors approving the resignation of Mr. Tran Lam from the position of General Director. Accordingly, Mr. Tran Lam will cease to hold the position of General Director of City Auto from January 3rd at his own request.

Simultaneously, Mr. Tran Quang Tri, a member of the Board of Directors, was appointed as Deputy General Director effective January 3rd. Notably, Mr. Tran Lam only assumed the position of General Director effective December 3rd, 2024.

Mr. Tran Lam is the son of Mr. Tran Ngoc Dan, Chairman of the Board of Directors of City Auto. Mr. Lam is currently a member of the Board of Directors of City Auto and Saigon Passenger Car Company, and also holds the position of General Director of Tan Thanh Do Group.

Mr. Lam currently owns over 8 million CTF shares, equivalent to an 8.4% stake in the charter capital, making him the third largest shareholder in City Auto, after Mr. Tran Ngoc Dan (9.23%) and Tan Thanh Do Group (8.42%).

City Auto in Ho Chi Minh City. Photo: City Auto

City Auto is a distributor of Ford and Hyundai vehicles in Vietnam. In terms of business results, for the first nine months of 2024, City Auto recorded revenue of VND 5,401 billion, an increase of 10%, and after-tax profit of VND 11.8 billion, a decrease of 70% compared to the same period last year.

Notably, the personnel changes at City Auto occurred a few days after TNG Investment and Trading Joint Stock Company (stock code: TNG) was fined for having a leadership structure where the father was the chairman and the son was the general director.

According to the penalty decision, TNG appointed Mr. Nguyen Duc Manh, son of Chairman of the Board of Directors Nguyen Van Thoi, to the position of general director without ensuring the conditions stipulated in the Enterprise Law.

Specifically, according to the Enterprise Law, for public companies, the director or general director cannot be related to the company's business managers, auditors, or parent company.

This resulted in TNG company being penalized and Mr. Nguyen Duc Manh being asked to resign from his position as general director.

Source: https://nld.com.vn/dong-thai-moi-sau-khi-mot-cong-ty-bi-phat-vi-bo-lam-chu-tich-con-lam-tong-giam-doc-196250104200621964.htm