A significant internal conflict has emerged within City Developments Limited (CDL), Singapore’s leading property developer, involving its executive chairman, Kwek Leng Beng, and his son, CEO Sherman Kwek. This dispute has escalated into legal action and has raised concerns about the company’s governance and future direction.
Allegations of a Boardroom Coup
On February 26, 2025, Kwek Leng Beng, 84, filed a lawsuit against his son Sherman, 49, accusing him of orchestrating an “attempted coup” within CDL’s board. The elder Kwek alleges that Sherman, along with directors Philip Lee and Wong Ai Ai, sought to bypass the company’s nomination committee to alter board composition and implement significant governance changes without proper oversight. These actions, according to Kwek, represent serious lapses in corporate governance.
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Sherman Kwek’s Response
In response, Sherman expressed deep disappointment regarding his father’s “extreme actions.” He contends that the board changes were intended to strengthen CDL’s governance and were not an attempt to undermine his father’s authority. Sherman also highlighted the influence of Catherine Wu, an adviser to Kwek Leng Beng, suggesting that her significant involvement in company matters has been a source of discord.
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Financial Implications and Trading Suspension
The public revelation of this dispute coincided with CDL reporting a 37% decline in annual profits, intensifying concerns among investors. In light of the internal turmoil, CDL suspended trading of its shares on February 26, 2025, to address the boardroom disagreements. Analysts have since downgraded CDL’s stock, citing uncertainties surrounding the company’s leadership and governance.
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Historical Context
City Developments Limited was founded in 1963 and acquired by the Kwek family in 1972. Under Kwek Leng Beng’s leadership, CDL expanded its portfolio to include premium shopping centers, hotels, offices, and residential developments across Singapore and internationally. The current dispute not only threatens the company’s stability but also casts a shadow over the legacy of one of Singapore’s most prominent business families.
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As the legal proceedings unfold, stakeholders and industry observers are closely monitoring the situation, given its potential impact on CDL’s operations and reputation.
Family Feud at City Developments Limited
Singapore property magnate seeks to oust son in boardroom battle
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