CDL executive chairman Kwek Leng Beng says son, other directors agree not to take further action after court hearing

SINGAPORE: City Developments Limited (CDL) executive chairman Kwek Leng Beng said his son Sherman and other directors acting with him have agreed not to take further action after a court hearing on Wednesday (Feb 26).

He said in a statement on Wednesday night that the “serious lapses” of corporate governance at CDL have now been halted following the court hearing.

Mr Kwek Leng Beng had earlier in the day announced that he was taking his son, group CEO Sherman Kwek, to court over alleged governance lapses and an attempted power grab at the board level.

The older Kwek accused his son and a group of directors, including Mr Philip Lee and Ms Wong Ai Ai, of bypassing CDL's nomination committee to push through board changes without proper review.

The dispute centres on events that began on Jan 28, when an email was sent to the board nominating two new independent directors.

“The two new directors, irregularly and hastily appointed on Feb 7, 2025 by means of directors’ resolutions in writing, have undertaken not to exercise any powers as directors until further notice of the court,” Mr Kwek Leng Beng said in his statement late on Wednesday.

“Sherman Kwek, Philip Lee, Wong Ai Ai and the remaining directors acting in concert with them, have undertaken not to take any further actions regarding their attempted changes to the board committees and management of certain CDL’s subsidiaries, until further notice of court.

“In addition, the irregularly constituted nominating and remuneration committee has been suspended from taking further actions.”

This means the board committees and the management of the relevant subsidiaries are “now safe from further attempts to destablise, dismantle and reconstitute them”, said Mr Kwek, adding that the board and the management of these subsidiaries will now be able to “function normally and without unwarranted interference as they were prior to the attempted coup”.

He stressed that strong corporate governance was the foundation of a "well-functioning and sustainable business" as it ensures transparency, accountability and responsible decision-making - all critical to maintaining investor confidence and protecting the long-term interests of shareholders.

“I am committed to upholding these principles, and this outcome reinforces the importance of adhering to the highest standards of governance in all corporate matters. We will continue to ensure the stability of CDL and the group, with a view to protecting our shareholders and creating long-term value for them.”

Mr Kwek also communicated his appreciation for CDL’s shareholders and stakeholders for their continued trust and support, and said further updates will be provided when necessary.