A fierce power struggle is unfolding at City Developments Limited (CDL) as executive chairman Kwek Leng Beng clashes with his son, CEO Sherman Kwek, over control of the board.
The Battle Lines: Father vs. Son
Kwek Leng Beng, CDL’s long-time leader, is fighting an “attempted coup” allegedly led by Sherman and key directors.
Sherman counters that the dispute stems from corporate governance concerns, particularly the influence of Dr. Catherine Wu, a longtime adviser to the chairman.
CDL’s majority board supports Sherman, raising questions about Kwek Leng Beng’s future at the helm.
The Key Power Players
The outcome may rest on the support of other Kwek family members, particularly:
Quek Leng Chan (Malaysia’s second-richest man), Quek Leng Chye, and Kwek Leng Kee—who control key stakes in Hong Leong Investment Holdings (HLIH), which holds 49.3% of CDL.
HLIH’s voting control could determine the board’s fate, with its largest shareholder, Davos Investment Holdings, controlled by key Kwek cousins.
If Davos sides with Sherman, he gains an advantage; if they back Kwek Leng Beng, he retains control.
What’s at Stake?
CDL’s share price plunged after the boardroom rift went public, with analysts downgrading ratings due to governance uncertainty.
The dispute could lead to a shake-up at the top, with potential outcomes including a board backing Kwek Leng Beng, Sherman, or even another family member.
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