CDC Software CEO Yip on administrative leave pending investigation

By Caroline Salls

Pittsburgh, July 18 - CDC Software Corp. chief executive officer Peter Yip has agreed to be placed on administrative leave, effective immediately, pending the outcome of a special committee investigation related to a July 13 order of the Supreme Court of New York, according to a 6-K filed with the Securities and Exchange Commission.

As previously reported, the special committee is made up of independent members of the board of directors of CDC Software and its CDC Corp. parent.

Chairman of the board John Clough has been appointed interim CEO.

Last week, the court imposed increased sanctions against CDC in connection with its legal battle with Evolution CDC SPV Ltd., Evolution Master Fund Ltd., SPC, Segregated Portfolio M and E1 Fund Ltd.

The sanctions were imposed based on the court's finding that CDC willfully disregarded its discovery obligations, submitted patently false deposition and affidavit testimony and advanced factually and legally unsupportable defenses and claims intended to frustrate Evolution's enforcement of the notes at issue in the dispute.

The company said the court indicated at a June 29 hearing that it was considering imposing personal sanctions against Yip based on his deposition and affidavit testimony.

According to the 6-K, Clough has agreed to forgo his cash compensation for chairman services while he serves as the interim CEO.

CDC is a Hong Kong- and Atlanta-based enterprise software and new media company.

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