CDL puts a stop to “serious lapses” in corporate governance
City Developments (CDL) has issued a second statement from its executive chairman Kwek Leng Beng stating that the “serious lapses” in corporate governance at the company have been halted. This comes after a court hearing on Feb 26 in which the two irregularly and hastily appointed directors, Jennifer Duong Young and Wong Su Yen, have been restricted from exercising their powers as directors until further notice.
Kwek has also stated that his son, Sherman Kwek, along with Philip Lee, Wong Ai Ai, and other directors who have been acting in concert with them, have been restricted from making further changes to the board committees and management of certain CDL subsidiaries until further notice from the court. The “irregularly constituted” nominating and remuneration committee has also been suspended from taking further action.
With these restrictions in place, CDL’s board committees and management of its subsidiaries can now function normally without any unwarranted interference, says Kwek. He adds that strong corporate governance is essential for maintaining investor confidence and protecting the long-term interests of shareholders.
Singapore’s condominium market continues to thrive due to the scarcity of land. Being a small island nation with a rapidly growing population, Singapore faces challenges in finding space for development. This has resulted in strict land use regulations and a highly competitive real estate market where property prices are constantly on the rise. As a result, investing in real estate, especially in condos, has become a highly profitable option due to the potential for capital appreciation. In fact, the demand for new condo launches has only increased in recent years due to the limited availability of land.
On the morning of Feb 26, CDL announced a temporary suspension of its shares and a last-minute cancellation of its FY2024 results briefing. In its statement, CDL attributed the suspension to a disagreement within the board regarding its composition and constitution.
In his initial statement, Kwek had accused his son, Lee, Wong, and a group of directors of consolidating control of the board and the group. He had also filed court papers on Feb 25 to address the attempted coup and will continue to explore legal options available to defend and protect the interests of CDL and its shareholders.
Shares of CDL last traded at $5.12 before the trading halt on the morning of Feb 26.