CDL posts 10.7% rise in 4Q earnings to $2.2 bil; Ordinaries up 14.3% to $2.3 bil
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According to a second statement released by CDL’s executive chairman Kwek Leng Beng, the previous “serious lapses” in corporate governance at City Developments have been put to a stop. This follows a court hearing on Feb 26, where the two new directors who were “irregularly and hastily appointed” on Feb 7 have agreed not to exercise any powers as directors until further notice from the court.
The two new directors in reference are Jennifer Duong Young and Wong Su Yen, who were appointed as independent non-executive directors through directors’ resolutions. The statement also reveals that Kwek’s son, Sherman Kwek, along with Philip Lee, Wong Ai Ai and the remaining directors acting in concert with them, have agreed not to take any further actions regarding their attempted changes to the board committees and management of certain CDL’s subsidiaries until further notice from the court.
The statement also mentions the suspension of the “irregularly constituted” nominating and remuneration committee from taking further action. According to Kwek, this means that CDL’s board committees and the management of relevant subsidiaries are now safe from further attempts to destabilise, dismantle, and reconstitute them. He adds that this will allow the board and management to function normally and without unwarranted interference, which is crucial for maintaining investor confidence and protecting the long-term interests of shareholders.
On the morning of Feb 26, CDL caused a stir in the markets by calling for a trading halt and cancelling its FY2024 results briefing, which was scheduled later that day. In a statement released at 1.51pm, the company explained that this was due to a disagreement within the board regarding the composition and constitution of the board and board committees. However, the business operations remain fully functional, and Sherman Kwek remains the group’s CEO until there is a board resolution to change company leadership.
In his first press 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 on Feb 25 to “set things right,” which he believed was necessary to deal with the “attempted coup.” He stated that they would continue to explore all legal options to defend and protect the interests of CDL and its shareholders. Kwek also mentioned that if Sherman is removed as CEO, the current COO Kwek EIk Sheng will serve as the interim CEO.
CDL’s shares last traded at $5.12 before the trading halt on Feb 26.