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CDC SOFTWARE REPLACES BOARD, CEO

Peter Yip, ex-CEO CDC SoftwareCDC Software, which has been embroiled in a dispute over corporate governance, has replaced its board of directors. So take a breath: Four directors, including Peter Yip who also resigned as CEO, stepped down this month. They were replaced by Marcus Watson, the chief restructuring officer who is handling the company’s bankruptcy reorganization efforts; Joseph Stutz, general counsel of the company’s parent, CDC corporate; and Dwight Mamanteo, who manages a fund that is a major investor.

On February 28, John Clough, previously chairman of the board, was named co-interim acting CEO Dr. C.K. Wong. The latter then stepped down on March 6. Last year, a judge accused Yip of lying under oath during a law suit after the board voted to drop him and then reinstated him, the dispute triggered Nasdaq to suspend the company’s stock and vote to delist it. That is being appealed. Meanwhile, Timothy Coen, who was named chief legal officer on January 17, was placed on administrative leave on March 4. According to the company’s SEC filing that was because there was an investigation of charges by the former general council that Yip was influencing business at CDC Software even though he was on leave. Donald L. Novajosky, was named chief legal officer. The board resignations were triggered by efforts of its indirect owner, CDC Corp. and another entity, CDC International, to dump them. CDC Software has also dropped an appeal of a decision by a bankruptcy court blocking its attempt to sell Ross Systems and Tradebeam. Those moves were opposed by Watson and the parent company. The board also decided not to submit an alternative reorganization plan in the bankruptcy case. An April 26 hearing has been scheduled regarding a proposed plan.

 

 

 

 

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