City Developments Limited (CDL) has responded to its call for a trading halt earlier this morning, stating that the halt was due to a disagreement within the board regarding its composition and constitution.
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CDL stated in a statement issued on Feb 26, that despite the temporary suspension, its business operations are fully functional and unaffected. Sherman Kwek will continue as the group CEO “until there is a board resolution to change company leadership”.
The company also mentioned that as the matter is currently under review, it will make further announcements in accordance with the Singapore Exchange (SGX) listing rules if there are any material developments.
In a later statement, Sherman Kwek expressed disappointment in the extreme actions taken by the chairman and a minority of the board in regards to the disagreement about the size and composition of the CDL board. He reiterated that their focus was to improve governance and the decision-making process as a board.
CDL’s trading suspension today was due to this issue being brought before the courts, despite the majority of the board not authorizing this legal action. Sherman Kwek clarified that the issue was not about removing the chairman and that their goal was to ensure the highest standards of governance that CDL is known for.
As the matter is now before the courts, CDL will not comment on the case and will make further announcements if there are any significant developments. The company had announced its FY2024 results on Feb 26, before the market opened, and later cancelled its 10am results briefing. Shares in CDL last traded at $5.12.