In response to the trading halt it called for earlier today, City Developments Limited (CDL) has issued a statement explaining the reason behind it – a disagreement within the board regarding its composition and constitution, as well as board committees. However, the company assures that its business operations are still functioning normally and unaffected by the temporary suspension, as stated in its statement on Feb 26.
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CDL has also confirmed that Sherman Kwek will continue to serve as the group CEO until a board resolution is made to change the company’s leadership. The issue is currently under review and the company will make further announcements in accordance with the listing rules of the Singapore Exchange (SGX) should there be any significant developments.
In a later statement, Kwek expresses his disappointment in the chairman and a minority of the board for their extreme actions in response to the disagreement. He clarifies that their focus as CEO and directors, with guidance from the company and independent legal counsel, has always been to strengthen governance. The trading halt earlier today was instigated by the minority, despite not having the approval of the majority of the board. Kwek emphasizes that this disagreement was not meant to remove the current chairman, but rather to improve the standards of governance and decision-making within the board.
Due to the ongoing legal proceedings, Kwek refrains from commenting on the matter and will provide further updates if any significant developments arise. CDL has also recently announced its financial results for the fiscal year ending Dec 31, 2024. However, the company has cancelled its 10am results briefing. CDL’s shares last traded at $5.12.
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