TNG Investment and Trading Joint Stock Company (stock code TNG) has just announced that it has received a decision on administrative sanctions from the Department of Planning and Investment of Thai Nguyen province.

The reason for the penalty is that TNG appointed Mr. Nguyen Duc Manh as General Director of TNG and Mr. Manh is the son of Mr. Nguyen Van Thoi - Chairman of the Board of Directors (BOD) of TNG. This does not ensure the conditions as prescribed in Point b, Clause 5, Article 162 of the Law on Enterprises.

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Mr. Nguyen Van Thoi, Chairman of TNG. Photo: TNG

For the above violations, TNG was fined 25 million VND and forced to dismiss Mr. Nguyen Duc Manh from the position of general director.

The time limit for implementing the remedial measures is 10 days from the date of receipt of this decision (December 26, 2024). After that, TNG is responsible for sending a written report on the results of implementing the remedial measures to the Inspectorate of the Thai Nguyen Department of Planning and Investment within 5 days from the date of change.

The penalty decision also states that if TNG fails to voluntarily comply within the time limit, it will be forced to comply according to regulations. In addition, according to the inspection agency, TNG has the right to appeal or file an administrative lawsuit against this penalty decision.

TNG is a large textile and garment enterprise in Vietnam with annual revenue of thousands of billions of VND.

Point b, Clause 5, Article 162 of the Law on Enterprises 2020 stipulates: For public companies, state-owned enterprises and subsidiaries of state-owned enterprises, the director or general director must meet a number of standards and conditions.

In particular, must not be a family member of the business manager, controller of the company and parent company; representative of state capital, representative of enterprise capital at the company and parent company.

According to experts, a public joint stock company is no longer an enterprise owned by an individual. Therefore, the law has strict regulations on transparency, information disclosure, and operating methods, and the establishment of a human resource mechanism to ensure the public nature of that enterprise.

The above regulation limits and eliminates acts of "family rule", ensuring democracy and the legitimate rights of the majority of shareholders are implemented in accordance with the law and charter of public joint stock companies.