Executive chairman of City Developments (CDL), Kwek Leng Beng, has announced that the “serious lapses” in corporate governance at CDL have been rectified. According to a second statement issued by the executive chairman, following a court hearing on February 26th, the two new directors who were appointed on February 7th have agreed to not exercise any powers as directors until further notice from the court. The new directors, Jennifer Duong Young and Wong Su Yen, had been appointed as independent non-executive directors through directors’ resolutions in writing.
The senior Kwek also stated that his son, Sherman Kwek, Philip Lee, Wong Ai Ai, and the remaining directors who acted in concert with them, have agreed 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. In addition, the “irregularly constituted” nominating and remuneration committee has been suspended from taking any further action.
The senior Kwek emphasized the importance of strong corporate governance as the foundation of a well-functioning and sustainable business. He stated that it ensures transparency, accountability, and responsible decision-making, which are crucial in maintaining investor confidence and protecting the long-term interests of shareholders.
On February 26th, CDL unexpectedly called for a trading halt and cancelled its scheduled FY2024 results briefing. In a statement released later that day, the company cited a disagreement within the board over the composition and constitution of the board and board committees as the reason for the trading halt.
In his first press statement, the senior Kwek accused his son, Lee, Wong, and a group of directors acting with them of trying to consolidate control of the board and the company. He also mentioned that he had filed court papers on February 25th to address the “attempted coup” and protect the interests of CDL and its shareholders.
CDL’s shares were last traded at $5.12 before the trading halt on February 26th.