Duc Giang Chemicals (DGC) Proposes Dismissal of Chairman and Vice Chairman Under Prosecution

Overview

Duc Giang Chemicals (DGC) has called an extraordinary general meeting to dismiss three board members, including Chairman Dao Huu Huyen and Vice Chairman Dao Huu Duy Anh, who have been prosecuted and detained by police. The company also seeks shareholder approval to select a new independent auditor after its 2025 audited financial statements were delayed due to document seizures by investigators. DGC shares are under warning status on HOSE.

Key Facts

• DGC proposes to dismiss three board members: Chairman Dao Huu Huyen, Vice Chairman Dao Huu Duy Anh, and member Pham Van Hung, all of whom have been prosecuted and detained by the Ministry of Public Security.
• The extraordinary general meeting will be held in 2026 to elect three new board members for the remainder of the 2024-2029 term.
• DGC is seeking shareholder approval to authorize the board to select a new independent auditor from two candidates: A&C Auditing and Consulting Co., Ltd. and UHY Auditing and Consulting Co., Ltd.
• The chosen auditor will audit the 2025 financial statements, review the semi-annual 2026 report, and audit the 2026 financial statements.
• DGC requested a delay in filing its 2025 audited financial statements because investigators have sealed and seized many important accounting documents.
• HOSE placed DGC shares under warning status effective April 23, 2026, due to the delayed financial reporting.
• DGC shares closed at VND 56,000 on April 15, 2026, down 1.07% with volume of 332,600 shares.

What Happened

Duc Giang Chemicals (DGC) announced documents for an extraordinary general meeting of shareholders in 2026, proposing the dismissal of three board members: Chairman Dao Huu Huyen, Vice Chairman Dao Huu Duy Anh (son of Mr. Huyen), and member Pham Van Hung. The reason cited is that these individuals have been prosecuted and detained by the Police Investigation Agency of the Ministry of Public Security for an ongoing investigation into the company.

The company will hold elections to fill the three vacant board positions for the remainder of the 2024-2029 term. The list of eligible candidates will be announced before the meeting, based on nominations from shareholders or shareholder groups meeting the company’s charter requirements. Additionally, DGC is seeking shareholder approval to authorize the board to select a new independent auditor from two firms: A&C Auditing and Consulting and UHY Auditing and Consulting.

Market Context

DGC shares closed at VND 56,000 on April 15, 2026, down 1.07% on volume of 332,600 shares. The stock has been under warning status on HOSE since April 23, 2026, due to the delayed filing of audited financial statements for 2025. The investigation and detention of top executives have created significant uncertainty around the company’s governance and financial reporting, weighing on investor sentiment. DGC operates in the chemicals sector and is listed on HOSE.

Strategic Significance

The dismissal of the chairman and vice chairman, both key figures in the company’s leadership, marks a major governance crisis at DGC. The ongoing police investigation and seizure of accounting documents raise concerns about potential financial irregularities and the reliability of past financial statements. The appointment of a new auditor is critical to restoring credibility and ensuring timely financial reporting. The outcome of the extraordinary meeting and the election of new board members will be closely watched by investors as a signal of the company’s path to stability.

What to Watch

• Outcome of the extraordinary general meeting and election of new board members.
• Selection of the new independent auditor and timeline for completion of the 2025 audited financial statements.
• Updates on the police investigation and any potential charges or penalties.
• HOSE’s decision on whether to maintain or change the warning status after financial reports are filed.
• Any further management changes or strategic shifts under the new board.