Sherman Kwek has contested his father, City Developments’ (CDL) executive chairman Kwek Leng Beng’s statements, arguing that they “do not present the full picture.”
On February 26, Leng Beng issued two statements. In the first, he accused Sherman, Philip Lee, Wong Ai Ai, and other directors of attempting to consolidate control over CDL’s board. He also expressed the difficulty of “firing my son” as a father. In response, Sherman, speaking for the majority of CDL’s board, called these public statements “incredibly disappointing,” framing the issue as a dispute over the composition and size of the board.
Later that night, Leng Beng issued a second statement claiming that “serious lapses” in CDL’s corporate governance had been halted.
Following a court hearing on the same day, two recently appointed directors, Jennifer Duong Young and Wong Su Yen, agreed not to exercise their powers until further notice from the court. These directors had been “irregularly and hastily appointed” on February 7, according to the court.
On February 27, Sherman, on behalf of the majority of CDL’s board, stated that his father failed to disclose that the minority directors—Leng Beng, Philip Yeo, Colin Ong, and Chong Yoon Chou—served him and his board faction with court papers just two and a half hours before the hearing.
Sherman argued that the minority directors attempted to obtain interim injunctions to block the majority directors from implementing various resolutions, to prevent two independent directors from exercising their powers, and to reverse decisions made by the majority of the board. He criticized this move, saying it deprived the majority directors of the chance to present their case fully to the court.
Sherman also challenged his father’s assertion that the minority directors succeeded in their application and that corporate governance lapses had been stopped. He clarified that the majority directors voluntarily offered undertakings to maintain the status quo until a full hearing could be conducted, emphasizing that the court did not issue any substantive orders on the minority directors’ application.
He also pointed out that his father’s statement omitted the fact that all directors, including the minority, were instructed by the court to avoid any actions affecting CDL’s subsidiaries—Singapura Developments and Millennium & Copthorne Hotels (M&C)—until the dispute is resolved.
Sherman denied any attempt to oust his father from his position, despite the latter’s claims of an “attempted coup.” He stated that the conflict arose from “a very serious issue of corporate governance” linked to Dr. Catherine Wu, who was appointed as a director to M&C’s board in July 2022 and resigned in January 2024. Despite officially serving as an advisor, Sherman alleged that Wu interfered in matters beyond her role and held significant influence within the company, partly due to her long-standing relationship with his father.
To address this issue, Sherman and the majority directors proposed resolutions to terminate Wu’s advisory agreement and to affirm that she held no authority to influence CDL and M&C’s management or staff. These resolutions were passed on February 21. Subsequently, the minority directors sought an urgent court hearing to reverse these decisions but were unsuccessful.
Sherman emphasized that the majority directors were committed to upholding corporate governance and accountability within CDL, underscoring their duty to protect shareholders’ interests and maintain proper governance practices.
Thank you
