CDL's Sherman Kwek says source of discord lies with Kwek Leng Beng's adviser, Catherine Wu

Mr Sherman Kwek, group chief executive of City Developments Limited (CDL) and son of billionaire Kwek Leng Beng, said on Feb 27 that the underlying reason that led to the public fallout at the company was his father's adviser, Dr Catherine Wu.

- Angela Tan

"There has been no attempt by us to oust the chairman," he said in a statement, referring to his father, who is executive chairman of CDL.

"The primary reason for the dispute relates to a very serious issue of corporate governance within the CDL group arising from the conduct of one Dr Catherine Wu."

He added: "The chairman's claim that there is an 'attempted coup' by the majority directors to consolidate control of CDL's board is not only incorrect, it distracts from the nub of the issue, therefore requiring us to respond to present the full picture."

Although Dr Wu's official position is adviser to the board of Millennium & Copthorne Hotels (M&C), a wholly owned and principal subsidiary of CDL Group, she has been interfering in matters going well beyond her scope, and she wields and exercises enormous influence, the younger Mr Kwek claimed.

"These matters have troubled us as directors. Due to her long relationship with the chairman, efforts that were made to manage the situation were done sensitively, but to no avail," he said.

His group is proposing a resolution to terminate the advisory agreement that Dr Wu has with the board of M&C, and another to affirm that Dr Wu has no power and authority, among other things, to influence or advise the directors, management and staff of the CDL and M&C groups.