Broker firm fails to get enough shareholders for exit plan

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Kim Long Securities will have to wait up to one month to know whether it can proceed with a plan to exit the brokerage business after failing to gather enough shareholders at its meeeting on Saturday.

The Hanoi-based company was expected to have the plan ratified by its shareholders so that it could to stop providing securities services and switch its business to real estate, computer trading, and other areas.

However, not enough shareholders turned up at Saturday's meeting to make up the quorum of 65 percent of stock owners. The shareholders present at the meeting together held just 33.15 percent of the total shares, local news website VnExpress reported on Sunday.

Kim Long is now required to organize a second meeting within the next 30 days and it has to secure a quorum with stockholders representing at least 51 percent of the total shares.

Chairman Ha Hoai Nam earlier this month told VnExpress the main reason that he wants to stop brokering services is that they are ineffective.

Analysts and stock investors are following the case closely because Kim Long is the first major stock brokerage firm that plans to withdraw from the service.

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