CDL's Kwek Leng Beng seeks to fire son as CEO over 'attempted coup'

A tussle between father and son for control of City Developments Limited (CDL) came to light on Feb 26, with executive chairman Kwek Leng Beng publicly criticising his son Sherman, who is the property giant's group chief executive officer.

- Angela Tan

The older Mr Kwek said he had filed court papers to address the "attempted coup" by Mr Sherman Kwek, 49, board members Philip Lee Jee Cheng and Wong Ai Ai, as well as a group of directors acting with them to allegedly consolidate control of CDL's board.

"This is necessary to deal with this attempted coup at the board level and restore corporate integrity," said Mr Kwek Leng Beng, who will be 84 in 2025.

"We intend to change the chief executive officer at the appropriate time. We will continue to explore all legal options available to us to vigorously defend and protect the interests of CDL and its shareholders," he said.

Responding, Mr Sherman Kwek expressed his disappointment over the "extreme actions" taken by his father over a disagreement around the size and make-up of the board of the property group.

"It is incredibly disappointing that our chairman and a minority of the CDL board have decided to take these extreme actions regarding this disagreement around the size and make-up of the CDL board," said Mr Sherman Kwek in a statement on behalf of the majority of the CDL board of directors.

He said: "To reiterate, this has never been about ousting our esteemed chairman."

Shortly before midnight on Feb 26, the older Mr Kwek issued another statement saying that the "serious lapses of corporate governance have been halted". This followed a closed-door court hearing earlier in the day.

He added that his son, Mr Lee, Ms Wong and the other directors acting in concert with them have undertaken to not take further action to change CDL's board committees and management of certain subsidiaries until further notice by the Singapore court.

CDL's nominating and remuneration committee, which oversees board appointments and other matters, has also been suspended from taking further action.