Duc Giang Chemicals (DGC) to Hold EGM to Replace Chairman, Vice Chairman Under Prosecution

Overview

Duc Giang Chemicals Group (DGC) has announced an extraordinary shareholder meeting (EGM) on May 8, 2026 to dismiss three board members, including Chairman Dao Huu Huyen and Vice Chairman Dao Huu Duy Anh, who are being prosecuted by police for environmental pollution and accounting violations. The meeting will also elect three new directors to fill the remaining term of the 2024-2029 board.

Key Facts

• DGC will hold an EGM on May 8, 2026 at its headquarters in Bo De ward, Hanoi.
• The record date for shareholder attendance is April 10, 2026.
• The board proposes to dismiss Chairman Dao Huu Huyen, Vice Chairman Dao Huu Duy Anh, and board member Pham Van Hung.
• The dismissals are due to criminal prosecution by the Police Investigation Agency of the Ministry of Public Security.
• Three new board members will be elected; the candidate list will be announced based on shareholder nominations.
• Shareholders will also vote to select an independent auditor for FY2025 and FY2026, with A&C and UHY as candidates.
• DGC has requested a delay in filing its 2025 audited financial report because accounting documents are sealed and seized by investigators.
• 14 individuals have been prosecuted in connection with the case, including the three board members and several accounting staff.

What Happened

DGC sent a notice to shareholders convening an extraordinary general meeting on May 8, 2026. The board of directors will seek approval to remove Chairman Dao Huu Huyen, Vice Chairman Dao Huu Duy Anh, and board member Pham Van Hung, citing their criminal prosecution by the Police Investigation Agency. The charges include “causing environmental pollution; violating regulations on research, exploration, and extraction of resources; and violating accounting regulations causing serious consequences.”

To maintain the required number of directors under the Enterprise Law and the company’s charter, the board will propose electing three new members. The candidate list will be based on valid nominations from shareholders and shareholder groups before the meeting. Separately, shareholders will decide on an independent auditor for the 2025 and 2026 financial statements, with A&C and UHY as the two candidates.

DGC had previously announced it would delay its 2025 audited financial report because many accounting documents and records are under seal and have been seized by the investigation agency, preventing the audit from proceeding.

Market Context

DGC shares closed at VND 56,000 on April 15, 2026, down 1.07% with volume of 332,600 shares. The stock trades on HOSE. The ongoing criminal investigation and leadership vacuum have weighed on investor sentiment, as the company faces significant operational and governance uncertainty. The chemicals sector has been under regulatory scrutiny, and DGC’s case highlights environmental and compliance risks in the industry.

Strategic Significance

The forced removal of the chairman and vice chairman due to criminal prosecution represents a severe governance crisis for DGC. The company’s ability to operate normally is compromised by the seizure of accounting documents and the delay in audited financial statements. Long-term investors face risks related to potential fines, remediation costs, and reputational damage. The election of new board members will be critical to restoring governance and compliance, but the outcome depends on the shareholder base and the ability to attract qualified independent directors. The case also underscores the increasing enforcement of environmental and accounting regulations in Vietnam.

What to Watch

• The list of candidates for the new board members, to be announced before the EGM.
• Shareholder voting results at the May 8 meeting, particularly the approval rate for dismissals and new appointments.
• The appointment of an independent auditor and the timeline for releasing the 2025 audited financial report.
• Any updates on the criminal investigation, including potential fines or penalties against the company.
• DGC’s operational performance and any impact on production or sales due to the investigation.