THE “primary reason” for the ongoing dispute at City Developments Ltd is “a very serious issue of corporate governance” involving Dr Catherine Wu, Kwek Leng Beng’s adviser, group chief executive Sherman Kwek said in a statement on Thursday (Feb 27) evening.
He cited Dr Wu as holding an official position as advisor to the board of M&C, a wholly-owned and principal subsidiary of CDL.
“(She) has been interfering in matters going well beyond her scope, and she wields and exercises enormous influence. These matters have troubled us as directors,” he said.
Kwek added that Dr Wu has a “long relationship” with CDL chairman Kwek Leng Beng, and that “efforts that were made to manage the situation were done sensitively, but to no avail”.
“This led us, with the benefit of legal advice, to propose a resolution to terminate the advisory agreement Dr Wu has with the board of M&C,” he said.
Another resolution was to affirm that Dr Wu has no power and authority, among other things, to influence or advise the directors, management and staff of the CDL and M&C Groups. Both resolutions were passed by majority of the board on February 21.
“We considered them to be necessary to protect the interests of the shareholders and relevant staff of the CDL Group, and to restore proper corporate governance and accountability,” said Kwek.
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