City Developments Limited (CDL) has responded to its trading halt with a statement explaining that it was due to a disagreement within the board regarding the board’s composition and structure. Despite the temporary suspension, CDL assures that its business operations remain unaffected and fully operational.
Sherman Kwek will continue as the group CEO until there is a board resolution to change company leadership. The company will make further announcements in accordance with Singapore Exchange (SGX) listing rules as the matter is currently under review.
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In a later statement, Sherman Kwek expresses disappointment at the chairman and minority of the board’s actions in taking extreme measures over this disagreement. He clarifies that the focus of the CEO and majority of the board, with guidance from the company and independent legal counsel, has always been to enhance governance. The trading suspension, despite not being authorized by the majority of the board, is a result of this legal action.
Sherman Kwek stresses that this issue is not about removing the chairman, but rather about strengthening the board to uphold the highest standards of governance. As the case is now before the courts, CDL will refrain from commenting on its merits and make further announcements if there are any significant developments.
CDL also released its FY2020 results on Feb 26, but later cancelled its planned results briefing at 10am. Shares in CDL last traded at $5.12.