Facing mounting challenges, Cordlife, a prominent cord-blood bank, announced that its remaining directors have unanimously agreed to forgo their directors’ fees for the financial year ending December 31, 2024. This decision comes in light of significant concerns raised ahead of the company’s extraordinary general meeting (EGM) slated for November 14.
The purpose of the upcoming EGM will be to appoint new auditors and to seek approval for the directors’ fees as part of the company’s restructuring efforts.
In a formal bourse filing on Sunday, November 10, Cordlife detailed that the non-independent non-executive directors Zhai Lingyun, Yiu Ming Yiu, and Chow Wai Leong are set to waive their directors’ fees amidst ongoing scrutiny.
However, it was noted that Chen Xiaoling, who was appointed as the group executive director effective July 17, 2024, will receive her remuneration for this new role, but she too will not be entitled to any directors’ fees during her tenure.
Cordlife indicated that a reassessment might occur to determine if Zhai, Yiu, and Chow will continue to waive their fees beyond the financial year 2024, depending on multiple factors.
The company emphasized that this reevaluation will consider the time and effort required from each director as well as the ongoing financial status of Cordlife.
Regarding its decision to “downgrade” to the mid-sized audit firm PKF-Cap, Cordlife explained that only two fee proposals were received after KPMG chose not to pursue reappointment, with the alternative proposal coming from another mid-sized auditing firm.
Additionally, Cordlife highlighted that audit partner Lee Eng Kian possesses an impressive 29 years of experience auditing listed companies, including established names such as USP Group, Bromat Holdings (previously referred to as No Signboard), and Zico Holdings.
As of the last market update, shares of Cordlife remained unchanged, closing at S$0.15 on November 8, just prior to the filing announcement.
**Interview with Corporate Governance Expert, Dr. Emily Huang, on Cordlife’s Recent Decision to Waive Directors’ Fees**
**Editor:** Good afternoon, Dr. Huang. Thank you for joining us today to discuss Cordlife’s recent announcement regarding the waiver of directors’ fees for the upcoming financial year.
**Dr. Huang:** Thank you for having me. It’s a pleasure to share insights on this important topic.
**Editor:** To start, can you explain the significance of Cordlife’s decision forgoing directors’ fees in the context of their current challenges?
**Dr. Huang:** Certainly. Waiving directors’ fees is a significant gesture, particularly for a company facing scrutiny. It reflects a commitment to corporate governance and accountability. The directors’ decision signals to stakeholders that they are prioritizing the company’s financial health over personal gain, which can help regain trust during periods of instability.
**Editor:** What implications might this have for Cordlife’s upcoming extraordinary general meeting (EGM)?
**Dr. Huang:** The EGM is critical for Cordlife as it aims to appoint new auditors and seek approval for the directors’ fees. This decision to waive fees may ease tensions among shareholders and interested parties at the meeting. It shows that the board is taking steps to address concerns rather than acting defensively. How well the company communicates its restructuring plans will be crucial in shaping investor confidence moving forward.
**Editor:** In your opinion, what should be the primary focus for Cordlife as it navigates these changes?
**Dr. Huang:** Transparency will be vital. Cordlife needs to provide clear and comprehensive information regarding its restructuring strategy, the appointment of new auditors, and how these changes will contribute to future growth. Additionally, engaging with shareholders and addressing their concerns directly may help alleviate some of the scrutiny they are currently facing.
**Editor:** Lastly, what advice would you give to companies facing similar challenges as Cordlife?
**Dr. Huang:** I would advise them to prioritize open communication with stakeholders. This includes being proactive about addressing concerns, showcasing commitment to governance practices, and being willing to make tough decisions for the greater good of the organization. In times of uncertainty, building trust in leadership is essential.
**Editor:** Thank you, Dr. Huang, for your insights into this matter. We appreciate your time!
**Dr. Huang:** Thank you! It’s been a pleasure discussing these important issues with you.
