Why CDL's dissident directors were right to quit

THE exodus of directors from the board of City Developments (CDL), over concerns about the company's investment in Chinese real estate developer Sincere Property Group (SPG), may have some investors on tenterhooks.

Yet, combined with remedial steps CDL is already taking, the turnover of its board could well be a crucial and necessary step in regaining the confidence of the market.

The fact is that CDL may need to make some hard decisions about its ill-timed investment in SPG. A refreshed board would arguably be better positioned to do this without being second guessed by the market.