CDL acknowledges deviation from usual process in board changes

It was met with objections from several directors.

City Developments Limited (CDL) has acknowledged that recent changes to its board of directors deviated from the usual process, leading to a legal dispute which has now been settled.

The company said it bypassed its nomination committee (NC) when appointing Wong Su-Yen and Jennifer Duong Young as independent directors in early 2025.

CDL cited governance concerns and diversity goals as reasons for bypassing the NC’s usual review and recommendation process. Typically, the NC reviews nominations and conducts interviews, but this process was not followed in this case. Instead, the board proceeded with the appointments after conducting interviews and circulating notes.

The decision was met with objections from several directors, including executive chairman Kwek Leng Beng, who argued that the process violated company norms.

A legal challenge followed, but on 12 March, CDL’s board reached a settlement and discontinued the court application. The appointments and committee changes announced in February remain in effect.

CDL maintains that, despite the deviation from the standard NC process, the appointments were made in compliance with the law, the Listing Manual, and the company’s constitution.

The company also said that the actions taken were consistent with the intent of the Corporate Governance Code’s principles on board renewal.