City Developments Limited (CDL), Singapore's largest listed property developer, finds itself embroiled in a bitter internal feud. The conflict ignited following an email from CDL's corporate secretary on January 28, nominating two additional independent directors. The timing, on the eve of Lunar New Year, heightened tensions within the company. This discord has led to a temporary halt in CDL's share trading on the Singapore stock exchange as the company grapples with the fallout.
At the heart of this dispute lies a power struggle between CDL's executive chairman, Kwek Leng Beng, and his son, Sherman Kwek, who serves as the company's chief executive. Kwek Leng Beng has accused Sherman Kwek of orchestrating a boardroom coup, a move he deems necessary to counterbalance and restore the firm's integrity.
"This is necessary to deal with this attempted coup at the board level and restore corporate integrity." – Kwek Leng Beng
The conflict is exacerbated by CDL's vast business empire, which spans over 160 hotel, residential, and commercial properties worldwide. Kwek Leng Beng's leadership dates back to 1971 when he joined forces with his father and brother to steer the company. He assumed the role of executive chairman after his father's passing in 1995. However, recent events have revealed cracks in the familial and corporate relationship.
Sherman Kwek, along with a majority of CDL's board members, has expressed dismay over Kwek Leng Beng's recent actions. Despite this, Sherman remains at the helm of the company. However, CDL has announced plans to replace him with his cousin, Kwek Eik Sheng, should he be removed from his position.
"We intend to change the chief executive officer at the appropriate time." – Kwek Leng Beng and CDL
The current discord revolves around disagreements about the composition and size of CDL's board. While Sherman Kwek acknowledges these differences, he remains committed to his role as CEO.
"regarding this disagreement around the size and make-up of the CDL board" – Sherman Kwek