In a dramatic turn of events within City Developments Limited (CDL), Dr Catherine Wu has resigned from her position as an independent advisor to Millennium & Copthorne Hotels Limited (MCHL). Her resignation comes against the backdrop of a heated boardroom struggle between CDL’s executive chairman, Kwek Leng Beng, and his son, Sherman Kwek, who serves as the CEO.
A Boardroom Clash
The tension escalated when Sherman Kwek accused Dr Wu of overstepping her role, claiming she “interferes in matters going well beyond her scope”. In a press release dated 4 March 2024, Kwek Leng Beng announced that the board received Dr Wu’s ‘irrevocable resignation’ effective immediately, urging a restoration of investor confidence.
- Dr Wu served as an advisor since August 2024, prior to which she was a director on the MCHL board from June 2022 to January 2024.
- Kwek Leng Beng alleged governance breaches by Sherman and his board, stating these incidents must never recur.
- The boardroom drama has drawn attention to past financial issues, including a staggering loss of S$1.9 billion stemming from the Sincere Property acquisition in FY2020.
Calls for Governance Reform
Kwek Leng Beng highlighted the need for stringent corporate governance measures. He stated, “The first step in addressing these challenges should be to strengthen the corporate governance framework in a way that aligns with shareholders’ long-term interests.”
The ongoing strife surfaced publicly when Kwek Leng Beng accused his son of attempting a “coup” to consolidate control over the board. In response, Sherman Kwek insisted that the portrayal of events was misleading, arguing, “It failed to present a full picture of the dispute.”
Future Implications
As one of Singapore’s largest property firms, CDL’s internal battles reveal potential risks in investor confidence and share performance. With increased scrutiny, both father and son face pressure to navigate this turmoil while addressing pressing operational challenges.
Moving forward, the Kwek family must reconcile their differences to restore stability within CDL while ensuring effective corporate governance. As they forge ahead, the saga continues to generate significant interest among stakeholders and observers alike.