SINGAPORE: A boardroom tussle at City Developments Limited (CDL) has escalated into a legal battle, with property tycoon Kwek Leng Beng accusing his son of attempting a boardroom “coup”.
The dispute centres on claims that group CEO Sherman Kwek sought to appoint new independent directors without full board approval, leading to a power struggle at CDL, one of Singapore’s largest property companies and controlled by the Kwek family.
The public spat has sent shockwaves through the industry, raising questions about CDL’s governance and share price volatility.
Here’s what we know so far about the feud that has erupted between father and son:
Jan 28: An email was sent to CDL’s board, with board members Mr Philip Lee and Ms Wong Ai Ai nominating two new independent directors.
Jan 29: The elder Kwek, 84, questioned the urgency of appointing two new independent directors.
The timing, on the eve of Chinese New Year, and the rush to approve the appointments raised concerns, he said, adding that Mr Chong Yoon Chou, the chairman of the nomination committee, was “completely unaware” of the nominations.
Jan 31: Mr Lee requisitioned a board meeting in an attempt to push through the proposed appointments.
Feb 7: A board meeting was convened. The older Kwek said no vote was taken, but hours later, a written resolution approving the appointments of Ms Jennifer Duong Young and Ms Wong Su Yen as independent non-executive directors was passed.
The move, according to the elder Kwek, indicated a pre-planned effort by his son and other directors to consolidate control.
