Vietnam’s first technology venture capital fund, IDG Ventures Vietnam, has sued local tech company VCCorp, alleging that there are unusual signs of corporate governance lapses and concealment of financial management mistakes at the company, according to an announcement.
IDG shareholders, including IDGVV 15 Limited and IDG Ventures Vietnam, said in the announcement that they will sue VCCorp for “signs of wrongdoing in the corporate governance process” and “signs of violating the investment contract with shareholders, causing serious harm to the rights and legitimate interests of shareholders”.
These two funds have invested in VCCorp since 2007 as major shareholders. However, in 2018, they noticed unusual signs and mistakes in the management apparatus of the group. IDG requested information and explanations at the meetings of the board of directors and the extraordinary general meetings of shareholders to clarify the above issues but VCCorp did not cooperate.
The IDG shareholders pointed out that the leaders of VCCorp, including Vuong Vu Thang and Nguyen The Tan, did not cooperate and provide documents per the investor’s requests. They have alleged that the non-cooperative actions of VCCorp seriously affect the legal rights of the shareholders.
Therefore, IDG shareholders will exercise the right to complain and initiate lawsuits against the founders of VCCorp and members of the supervisory board of the company to protect the legitimate rights and interests of IDG and other shareholders at VCCorp.
Set up in 2004, IDG Ventures Vietnam works with entrepreneurs to grow innovative and market-leading companies, the VC firm claims. It currently has $100 million of funds under management, with investments in over 40 companies in the technology, media, telecommunications and consumer sectors, according to its website.
Some of its portfolio companies include VietStock, Vat Gia, Hocmai.vn, FBNC, Mobile Solution Services and so on.
VCCorp was established in 2006, operating in the field of technology and communication. The company owns nearly 30 websites, including financial information platform CafeF, Kenh14, Genk, Soha, Lotus and GameK.