In a response to its call for a trading halt earlier this morning, City Developments Limited (CDL) has issued a statement saying the halt was in view of the disagreement within the board in relation to the composition and constitution of the board and the board committees.
“Despite this temporary suspension, our business operations remain fully functional and unaffected,” adds CDL in a Feb 26 statement.
Sherman Kwek will remain as the group CEO “until such time as there is a board resolution to change company leadership”.
As the matter is currently under review, the company will make further announcements should there be any material developments in this matter, in line with Singapore Exchange (SGX) listing rules.
In a later statement, Sherman Kwek says: "It is incredibly disappointing that our chairman and a minority of the CDL board have decided to take these extreme actions regarding this disagreement around the size and make-up of the CDL board."
"Our focus as CEO and directors, as a board majority and with clear guidance and support from our company and independent legal counsel, has always been to implement steps to improve governance."
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CDL's trading suspension earlier today as this issue comes before the courts, despite this legal action "not being authorised by the majority of the board".
Sherman Kwek reiterated that this issue has "never been about ousting our esteemed chairman".
"These steps to strengthen our board have purely been to ensure CDL has the highest standards of governance to which it has become known, and our collective decision-making as a board is as robust as possible. As the matter is now before the courts for adjudication, we will not comment on the merits of the case and will make further announcements if there are any material developments.”
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CDL announced its FY2024 ended Dec 31, 2024 results on Feb 26 before the market opened. The company later cancelled its 10am results briefing.
Shares in CDL last traded at $5.12.
