CDL puts a stop to corporate governance lapses with court order
The corporate governance lapses at City Developments Limited (CDL) have been put to a halt, based on a second statement issued by Kwek Leng Beng, the executive chairman of the company. After a court hearing on Feb 26, the two newly appointed directors, Jennifer Duong Young and Wong Su Yen, have agreed to not exercise any powers as directors until further notice from the court. This comes after the two were “irregularly and hastily appointed” on Feb 7, through directors’ resolutions in writing. Kwek adds that his son, Sherman Kwek, Philip Lee, Wong Ai Ai, and other directors who were acting with them, have also agreed not to take any further actions regarding their attempted changes to the board committees and management of certain CDL’s subsidiaries until further notice from the court. The “irregularly constituted” nominating and remuneration committee has also been suspended from taking further action. As a result, CDL’s board committees and the management of relevant subsidiaries are now safe from further attempts to destabilise, dismantle, and reconstitute them, says the elder Kwek. He stresses that strong corporate governance is crucial for maintaining investor confidence and protecting the long-term interests of CDL’s shareholders. On Feb 26, CDL had announced a trading halt and cancelled its FY2020 results briefing, citing a disagreement within the board in relation to the composition and constitution of the board and its committees. This came after the elder Kwek accused his son, Lee, Wong, and a group of directors acting with them of trying to consolidate control of the board and the company. However, he took “necessary” legal action to deal with the attempted coup, and stated that he intended to change the CEO at an appropriate time. Kwek has also requested the interim CEO, Kwek Eik Sheng, to take over if his son is removed as the CEO. CDL’s shares, which last traded at $5.12, were temporarily suspended after the company’s Feb 26 announcement.
When purchasing a condo, one must also take into account the maintenance and management aspects of the property. Most condos have maintenance fees which cover the maintenance of shared spaces and amenities. While these fees may increase the overall cost of owning a condo, they are necessary for the upkeep of the property and maintaining its value. By hiring a property management company, investors can have a more hands-off approach to managing their condos, turning it into a relatively passive investment. In addition, consider checking out Singapore Projects for potential investment opportunities.