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

(NLDO) - Notably, this person has only been in the position of General Director since December 3, 2024.

City Auto Joint Stock Company (stock code: CTF) announced the Board of Directors' resolution approving the resignation of Mr. Tran Lam from the position of General Director. Accordingly, Mr. Tran Lam will resign from the position of General Director of City Auto from January 3rd according to his personal wishes.

At the same time, Mr. Tran Quang Tri, a member of the Board of Directors, was appointed as Deputy General Director from January 3. Notably, Mr. Tran Lam will take the position of General Director from December 3, 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 Transport Company, and also holds the position of General Director of Tan Thanh Do Group.

Mr. Lam currently owns more than 8 million CTF shares, equivalent to 8.4% of charter capital, the 3rd largest shareholder at City Auto, after Mr. Tran Ngoc Dan (9.23%) and Tan Thanh Do Group (8.42% of capital).

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, in the first 9 months of 2024, City Auto's revenue was recorded at VND 5,401 billion, up 10% and after-tax profit was VND 11.8 billion, down 70% compared to the same period last year.

Notably, the personnel change at City Auto took place a few days after TNG Investment and Trading Joint Stock Company (stock code: TNG) was fined for having a leadership structure with the father as chairman and the son as 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 prescribed by the Law on Enterprises.

Specifically, in the Enterprise Law, for public companies, the director or general director cannot be a person with a family relationship with the business managers, controllers of the company or parent company.

This led to TNG company being fined and required to remove Mr. Nguyen Duc Manh from the position of 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