Cdl Board Fight Cools Undertaking Two New Ids
Kwek Leng Beng’s CityDev launches S$500m green bond
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City Developments Limited (CDL) has put a stop to the “serious lapses” in corporate governance, according to a second statement released by its executive chairman, Kwek Leng Beng. This comes after a court hearing on Feb 26, where the two newly appointed directors, Jennifer Duong Young and Wong Su Yen, have agreed not to exercise any powers as directors until further notice from the court. These two directors were appointed via written resolutions, which Kwek had deemed as “irregular and hasty.”
Kwek also mentioned that his son, Sherman Kwek, Philip Lee, Wong Ai Ai, and the remaining directors who acted in concert with them, have given an undertaking not to take any further action regarding their attempted changes to the board committees and management of certain CDL subsidiaries until further notice from the court. The “irregularly constituted” nominating and remuneration committee has also been suspended from taking further action.
With this development, CDL’s board committees and management of relevant subsidiaries are now safe from any further attempts to destabilise or reconstitute them. Kwek emphasized the importance of strong corporate governance in maintaining investor confidence and protecting the long-term interests of shareholders.
On the morning of Feb 26, CDL surprised the market by calling for a trading halt and cancelling its FY2024 results briefing, citing a disagreement within the board regarding its composition and constitution. However, the company assured that its business operations remain unaffected and Sherman Kwek will continue to serve as the group CEO until a change in leadership is resolved by the board.
In his first statement, Kwek accused his son, Lee, Wong and a group of directors of trying to consolidate control of the board and the group. He also mentioned filing court papers to address the matter, which he deemed necessary to deal with the “attempted coup.” He added that the company intends to change the CEO at the appropriate time and will explore all legal options to protect the interests of CDL and its shareholders. In the event that Sherman is removed as CEO, current COO Kwek EIk Sheng will take on the role of interim CEO.
CDL’s shares were last traded at $5.12 before the trading halt on the morning of Feb 26.