Sherman Kwek disappointed over father's 'extreme actions'

CEO says his focus, and that of directors, has always been on improving governance

- Angela Tan

Mr Sherman Kwek, group chief executive officer of City Developments Limited (CDL), on Feb 26 expressed his disappointment over the "extreme actions" taken by his father Kwek Leng Beng 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 added that the focus of the CEO and the company's directors has always been to implement steps to improve governance.

This comes after CDL executive chairman Kwek Leng Beng on Feb 26 said that he has filed a lawsuit to address the "attempted coup" by his son Sherman, 49, board members Philip Lee and Wong Ai Ai, as well as a group of directors acting with them to allegedly consolidate control of CDL's board.

The older Kwek claimed that Mr Sherman Kwek's group had bypassed the nomination committee (NC) on two occasions to change the board composition, and hastily followed up by making significant changes to board committees and CDL's governance.

He also questioned the appointment of two new independent directors - Ms Jennifer Duong Young and Ms Wong Su-Yen without proper vetting and bypassing the NC.

"I was left with no choice but to send an e-mail on Feb 8, 2025, seeking Sherman's dismissal from the position of group chief executive officer. His role in circumventing good governance and consolidating power through the irregular appointment of two new directors was the latest of a long series of missteps," the older Mr Kwek said.