EMBATTLED cord-blood bank Cordlife will hold an extraordinary general meeting (EGM) next month to appoint new auditors and approve its directors’ fees.
The EGM will be held at Great World City East on Nov 14 at 10 am, during which Cordlife will seek the appointment of audit firm PKF as its external auditor until its next annual general meeting.
In evaluating PKF’s suitability for the appointment, Cordlife said that its audit and risk committee had considered, among other things, the adequacy of the firm’s resources to undertake the company’s ongoing audits.
It also took into account the track record of incoming audit partner Lee Eng Kian, who has 29 years of experience.
The proposed appointment will allow the group to save about 30 per cent in audit fees, compared to aggregate audit fees of about S$698,000 incurred in the financial year ended Dec 31, 2023, it added.
Cordlife’s former external auditor, KPMG, gave notice in April that it would not seek reappointment.
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The firm had previously submitted a disclaimer of opinion in its independent auditor’s report dated Apr 24, although this was not raised as the reason for its decision to retire as Cordlife’s external auditor.
Cordlife said that the disclaimer of opinion raised by KPMG will be taken into account for PKF’s existing audit approach.
Vote on directors’ fees
During the EGM, the company will also seek unitholders’ approval for Cordlife’s directors to be paid up to S$135,000 for the financial year ending Dec 31, 2024. This is to be paid quarterly in arrears.
At the company’s last annual general meeting on May 14, the proposed resolution to approve directors’ fees of up to S$450,000 for the same period was not approved. To date, no director has been paid fees for the 2024 financial year.
