In response to a trading halt called earlier this morning, City Developments Limited (CDL) has released a statement stating that the halt was due to a disagreement within the board regarding its composition and constitution, as well as the board committees.
Despite the temporary suspension, CDL assures that its business operations are still fully functional and unaffected, as stated in a statement on Feb 26. Sherman Kwek will continue to serve as the group CEO until the board passes a resolution to change the company’s leadership.
Currently, the matter is under review and any significant developments will be announced according to the listing rules of the Singapore Exchange (SGX).
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In a later statement, Sherman Kwek expressed disappointment at the extreme actions taken by the chairman and a minority of the board regarding the disagreement over the size and composition of the board. He emphasized that their focus, as the majority of the board, has always been to enhance governance through the guidance and support of the company and independent legal counsel.
The trading halt of CDL earlier today was a result of the issue being brought before the courts, despite not being authorized by the majority of the board. Sherman Kwek reiterated that their goal was not to remove the chairman, but to improve the board’s decision-making process.
He also stated that the company’s strong board has always been known for its high standards of governance, and the steps taken were to maintain and improve this reputation. As the matter is now in court, they will refrain from commenting on its merits and will make further announcements if there are any significant developments.
CDL had announced its FY2024 results on Feb 26 before the market opened, but later canceled its 10am results briefing. The company also offered to privatize Millennium & Copthorne Hotels New Zealand for $1.72 per share.
CDL’s shares were last traded at $5.12.