22-3-2024 (SINGAPORE) Tan Poh Lan, the former Group CEO of Cordlife, along with four board members, has been apprehended in connection with potential violations of the company’s disclosure obligations regarding irregular temperatures in a cryogenic storage tank. Cordlife, a listed private cord blood bank, has faced scrutiny following the Ministry of Health’s revelation on November 30, 2023, that seven of its cord blood storage tanks had experienced temperatures exceeding acceptable limits.
It later came to light that Cordlife’s board had been notified about temperature irregularities in one of the tanks as early as February 2023. As a result, cord blood units belonging to at least 2,150 clients were damaged, with another 17,050 potentially affected.
In a filing to the stock exchange in the early hours of March 22, Cordlife announced that it had received a notice from the Commercial Affairs Department (CAD) of the police and the Monetary Authority of Singapore (MAS) on March 19. The notice requested documents and information in relation to police investigations into an offence under the Securities and Futures Act. Cordlife has already provided some of the requested documents.
Former Group CEO Tan Poh Lan, along with four directors, has been arrested in connection with the ongoing investigations and subsequently released on bail. The arrested individuals are acting chairman Ho Choon Hou, independent directors Yeo Hwee Tiong and Titus Jim Cheong Tuck Yan, as well as non-independent non-executive director Chow Wai Leong.
Chief Financial Officer Thet Hnin Yi has been asked to assist with the investigations but has not been arrested, according to the company.
On March 19, the CAD and MAS also issued a notice requiring four directors of the company, who are not based in Singapore, to attend interviews related to the investigations on April 2. The directors summoned for interviews are independent director Joseph Wong Wai Leung, non-independent non-executive director Zhai Lingyun, non-independent non-executive director Chen, and non-independent non-executive director Yiu Ming Yiu.
Cordlife stated that all directors, including Tan Poh Lan and Thet Hnin Yi, have given undertakings to inform the board about the ongoing investigations and any subsequent developments.
Although the majority of the board believes that it would be in the company’s interest for all directors to continue serving, Cordlife disclosed that Directors Zhai and Chen disagree and hold the view that the arrested directors released on bail are not suitable to remain on the board.
In a filing on March 21, Cordlife announced that its shareholders had requested the removal and appointment of several directors due to the mishandling of cord blood units. The board will evaluate the suitability of all directors to continue serving, taking into account the progress of the investigations. Depending on the outcomes, the board may also consider appointing new independent directors to provide additional oversight for the company.
Cordlife affirmed that its operations will continue as usual during this period of investigation.
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