CDL's future under scrutiny; HPH Trust jumps after CK Hutchison sells assets

Tussle for control of property giant to play out in court, with father taking on son

- Kang Wan Chern

The tussle for control of City Developments Limited (CDL) between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek, continued to play out last week.

Observers and analysts are now suggesting that it might be time for CDL to professionalise its board and appoint non-family members to lead the company in the best interests of shareholders.

However, with the wider Kwek clan holding 49 per cent in CDL through various investment vehicles such as Hong Leong Investment Holdings, the family's influence will likely continue to shape the company's future.

The latest development in the saga was the resignation of Dr Catherine Wu as unpaid, independent adviser at CDL subsidiary Millennium & Copthorne Hotels, a post she had held since August 2024, according to Mr Kwek Leng Beng's press statement on March 5.

Dr Wu first came into the spotlight after Mr Sherman Kwek alleged that the primary reason for the dispute with his father is Dr Wu, who had been "interfering in matters going well beyond her scope" at the company.

This was in response to Mr Kwek Leng Beng's initial allegation on Feb 26 that Mr Sherman Kwek and four directors acting with him had bypassed the nomination committee, appointed two independent directors against legal advice, and restructured key committees to oust him as executive chairman in an "attempted coup".

He also called for the removal of Mr Sherman Kwek as group CEO.

Court papers were filed to address these issues and both sides have appointed lawyers. Mr Sherman Kwek has roped in Senior Counsel Davinder Singh to represent him, while his father has hired LVM Law Chambers, helmed by Senior Counsel Lok Vi Ming. The case is ongoing.