SINGAPORE: The corporate clash within City Developments Limited (CDL) between property mogul Kwek Leng Beng and his son, Sherman Kwek, has escalated this week, drawing public attention to a growing dispute. Sherman, the group CEO of CDL, has openly addressed allegations from his father regarding governance issues that threaten the integrity of the company.
Source of Tension: Dr Catherine Wu
At the centre of this family feud is Dr Catherine Wu, 65, an adviser to the board of Millennium & Copthorne Hotels (M&C), a subsidiary of CDL. Sherman Kwek has alleged that Dr Wu has “interfered in matters going well beyond her scope,” suggesting that her influence has become problematic for the board’s operations.
- Dr Wu’s long-standing relationship with Kwek Leng Beng has been called into question.
- Sherman stated that their attempts to resolve these issues sensitively proved futile.
Court Proceedings and Allegations
The situation intensified on 26 February 2024 when Kwek Leng Beng announced he was taking legal action against Sherman over supposed governance violations and accused him of a coup attempt within the CDL board. Sherman quickly rebutted these charges, labelling his father’s characterisation as misleading and insisting there was no intent to unseat the chairman.
Resolutions Passed
On 21 February 2024, Sherman confirmed that the majority of directors—led by him—passed resolutions to terminate Dr Wu’s advisory role and reaffirm her lack of authority within the company. These actions, he argued, were vital for preserving corporate governance at CDL.
The Court Hearing: An Ambush?
In the wake of these developments, Sherman provided a detailed account of the recent court proceedings, which he described as an “ambush” orchestrated by minority directors who attempted to obtain interim injunctions against the majority. He expressed frustration that they were not given adequate time to present their case, leading to a temporary cessation of action from the majority directors.
Sherman’s statements called attention to a lack of transparency in the minority directors’ communications, stating that the court was not informed of critical points regarding their authority or the legitimacy of their claims. This highlights the tensions that are brewing within CDL as the Kwek family grapples with both personal and corporate ramifications.
Corporate Governance: A Critical Focus
As the conflict continues, Sherman Kwek emphasises the importance of restoring corporate integrity and governance at CDL. “The majority directors are alive to their duties and will continue to uphold corporate governance and accountability within the CDL Group,” he declared, echoing the need for clarity and respect in such high-stakes corporate environments.
In an industry where reputation is paramount, the implications of this family feud reverberate more widely, drawing interest from shareholders and the public alike.