Cdl Board Fight Cools Undertaking Two New Ids

The conflicts within City Developments (CDL)’s board and corporate governance have been put to a stop, according to a second statement released by the company’s executive chairman, Kwek Leng Beng.

During a court hearing on Feb 26, the two newly appointed directors, Jennifer Duong Young and Wong Su Yen, who were appointed on Feb 7 through a written resolution, have agreed to not exercise any power as directors until further notice from the court.

This comes after Kwek filed court papers on Feb 25 to address the “attempted coup” by his son, Sherman Kwek, Philip Lee, Wong Ai Ai, and other directors who were acting in concert with them, to “consolidate control of the board and the group”.

Kwek also revealed that Sherman would be removed as CEO at the appropriate time, and the current COO, Kwek Eik Sheng, will serve as interim CEO.

The “irregularly constituted” nominating and remuneration committee has also been suspended from taking any further action.

With this, CDL’s board committees and management of its subsidiaries can now operate without interference or attempts to destabilize them.

Kwek emphasized the importance of strong corporate governance in maintaining transparency, accountability, and responsible decision-making, which are crucial for investor confidence and protecting the interests of shareholders.

The unexpected trading halt and cancellation of CDL’s FY2020 results briefing on the morning of Feb 26 came as a shock to the market.

CDL explained that the decision was due to a disagreement within the board regarding the composition and constitution of the board and board committees.

Despite the temporary suspension, CDL’s business operations remain unaffected. Kwek Leng Beng stressed that the company will continue to explore all legal options available to protect the interests of CDL and its shareholders.

CDL’s shares were last traded at $5.12 before the trading halt on the morning of Feb 26.