In response to its request for a trading halt earlier this morning, City Developments Limited (CDL) has released a statement explaining that the halt was due to a disagreement within the board regarding the board’s composition and committees.
Despite the temporary suspension, CDL reassures that its business operations continue to run smoothly and remain unaffected. The current CEO, Sherman Kwek, will continue in his role until there is a board decision to change company leadership.
The company will provide further updates if there are any significant developments on this issue, in accordance with the listing rules of the Singapore Exchange (SGX).
In a subsequent statement, Sherman Kwek expresses disappointment at the extreme actions taken by the chairman and a minority of the CDL board in response to their disagreement over the size and makeup of the board. He clarifies that the majority of the board, with guidance from the company and independent legal counsel, has been focused on implementing measures to enhance governance.
CDL’s trading suspension earlier today was due to the matter being brought before the courts, despite not being authorized by the majority of the board. Kwek emphasizes that this issue has never been about removing the chairman, but rather about ensuring the company maintains the same high standards of governance that it has been known for and that board decision-making is robust.
As the matter is now subject to adjudication in the courts, Kwek states that the company will refrain from commenting on the specifics of the case and will issue further updates if there are any significant developments.
CDL had announced its FY2020 results on Feb 26 before the market opened but later cancelled its 10am results briefing. The company also announced its intention to privatize Millennium & Copthorne Hotels New Zealand for $1.72 per share.
Shares in CDL were last traded at $5.12. This article originally appeared on .