Sias Queries CDL on Catherine Wu's Role, Directors' Appointment

Questions on board effectiveness, group strategic direction and legal fees also raised

- Sue-Ann Tan

Shareholders of City Developments Limited (CDL) have submitted numerous questions after news emerged on Feb 26 of a tussle between father and son for control of the Singapore property developer, the Securities Investors Association (Singapore), or Sias, said on March 6.

These include the role of Dr Catherine Wu, the former unpaid adviser to CDL subsidiary Millennium & Copthorne Hotels (M&C), and how two new directors were appointed to the board of CDL without the necessary approvals.

CDL executive chairman Kwek Leng Beng has accused his son Sherman Kwek, who is the group chief executive, of bypassing the nominating committee to change the composition of the company's board with the appointment of two new directors, Ms Jennifer Duong Young and Ms Wong Su-Yen. He also called it an "attempted coup" and filed court papers to address it.

But the younger man said the underlying reason that led to the public fallout at the company was his father's adviser, Dr Wu.

Dr Wu subsequently resigned as an unpaid adviser to M&C on March 4.

Sias president and chief executive David Gerald questioned: "What was the role of Dr Catherine Wu as a director on the board of M&C from June 2022 to January 2024? Was her appointment approved by the board? Was her performance assessed by the M&C board and, if so, what were the findings?"

He asked for the reasons behind her resignation from the board and questioned if there was a "rigorous search and nomination process" for the role of independent adviser. He also queried the responsibilities of the role and whether there would be a replacement for the position.