Recently, Yangming Shipping in the cost of nearly 30 billion yuan of Yangming Shipping LNG (liquefied natural gas) power dual-fuel all-container ship procurement case broke out serious decision-making dispute!
Last Friday (May 12) in the absence of 2 seats alone, the audit committee ahead of paralysis, the board of directors to "6 seats agreed, 3 seats abstention" forced entry success, even if some directors can set up special provisions, retain the contract within 1 month can change other alternative fuel programs, in an attempt to rein in, but because Yang Ming has paid the contract payment, fear of the shipyard rebuffed.
Zheng Zhenmao, chairman of Yangming, will actively promote the LNG ship procurement plan after taking office in 2020, hoping to win the title of the first container ship built in Asia. However, the cost of LNG ships is not high, and there are not many shippers who have ordered them. The market evaluation has been mixed, which has led to continuous disputes within the board of directors. In September last year, two independent directors, Wang Zijun and Chen Jie-fu, were asked to go because their ideas were not in agreement.
Two independent directors resigned, Yang Ming's audit committee was paralyzed, unable to operate, Yang Ming originally planned to hold an interim meeting of shareholders to re-elect an independent director, but ended without a problem, which allows major bills to skip the audit committee, the board of directors agreed to two-thirds of the "shortcut", when it was believed that this special arrangement is for five LNG ship procurement case paving the way.
Yangming originally had 11 directors. After 2 sole directors resigned, there were 9 directors left. Sure enough, last Friday, Yang Ming held a board meeting, with "6 seats agreed, 3 seats abstention" the number of advantage, just passed the case, the resolution to 0.85 billion ~ 0.975 billion U.S. dollars, equivalent to about NT $26.129 billion ~ 29.971 billion yuan, the purchase of 5 LNG new ships, as to which manufacturer won the bid, Yang Ming did not announce.
The shipping industry pointed out that Yangming's board of directors has been stuck in the dispute over whether to build LNG ships, mainly because LNG is no longer the mainstream shipbuilding choice in the near future. Under the same consideration of energy saving and carbon reduction, large shipping companies have gradually turned to build methanol ships. Even foreign media reported that Evergreen gave up building LNG ships and switched to methanol ships, but Yangming insisted on the evaluation case two years ago, this is puzzling.
In this regard, some directors of the board of directors proposed that special specifications should be agreed with the shipyard. Within one month after signing the contract, the shipyard should propose a plan to change to other alternative fuels (such as methanol), so that Yangming still has the opportunity to change the decision after signing the contract. However, people familiar with the shipbuilding business believe that if the contract payment is paid, will the shipyard still manage Yangming? This treaty is useless.
Shipping industry analysis, Yang Ming in a hurry at this time of shipbuilding, may buy high prices do not say, LNG compared to methanol, in the supplementary practices and personnel operations are more immature, in fact, is a risky move, fear of high follow-up operating costs, "one step wrong, step wrong", involving not only 30 billion yuan, but the future competitiveness.
For the outside world questioned, Yang Ming said, this is in response to the global fleet construction planning and echo net zero emission reduction requirements, is through an open and transparent international selection and bidding process, authorized to negotiate the new ship contract construction matters, in addition to enhance the fleet competitiveness, at the same time can save energy and reduce carbon to implement the environment-friendly sustainable business objectives.
Source: one shipping