Loh Huey Xin, Author at Goody Feed

Billionaire tycoon Kwek Leng Beng has discontinued the lawsuit he filed against his son Sherman Kwek and other City Developments Limited (CDL) directors, bringing an end to a high-profile family dispute that captured public attention for over two weeks. In a statement released on 12 Mar 2025, the CDL executive chairman confirmed he would remain in his position while Sherman would continue as group CEO. All current board members, including the two recently appointed independent directors—Jennifer Duong Young and Wong Su-Yen—will stay on the CDL board. "I have decided that the legal action that was launched in regard to the board resolutions taken since 7 Feb 2025 will be discontinued," the elder Kwek said. The company confirmed in a regulatory filing that "court proceedings have been settled and will be discontinued." CDL Boardroom Battle and Governance Allegations The family feud became public on 25 Feb when Kwek Leng Beng moved to dismiss his son as group CEO and filed a lawsuit alleging an attempted "coup" at the board level. Court documents revealed the senior Kwek had accused Sherman and six CDL board members of trying to take control of what was once Singapore's largest listed developer. He specifically pointed to the appointment of two new independent directors without securing full board approval and bypassing the nomination committee. The elder Kwek also highlighted financial losses under his son's leadership, including "poor investment decisions" in the UK property market and a S$1.9 billion loss from CDL's investment in Chinese developer Sincere Property in 2020. Sherman, who has led the company as CEO since 2018, denied attempting to oust his father, calling the legal action "extreme" and unauthorized by the majority of the board. He instead pointed to his father's former personal assistant, Dr Catherine Wu, as the source of the dispute. Sherman claimed the former Taiwanese musician, now a Singaporean, had been "interfering in matters going well beyond her scope" and "wields and exercises enormous influence." On 4 Mar, Kwek Leng Beng announced Dr Wu's resignation as "an unpaid independent adviser" to the board of directors at CDL's hotel arm, Millennium & Copthorne Hotels (M&C). Market Response and Future Direction The public dispute affected investor confidence, with CDL shares closing at S$4.94 on 12 Mar, down from S$5.12 before trading was halted on 26 Feb when the conflict became public. Trading resumed on 3 Mar. Now that boardroom tensions have been defused, the elder Kwek stated that all board members have agreed to "put aside their differences for the greater good of CDL and its stakeholders." "We will all continue to focus on strengthening CDL's business, in accordance with good corporate governance, now and in the future," he said. The company plans to complete landmark developments across Singapore and globally, expand various brands under Millennium & Copthorne, continue its capital recycling initiative, and maximize shareholder value. Both parties engaged in two closed-door hearings at the Singapore High Court before deciding to end the lawsuit. Market analysts remain divided on the company's outlook. Some hope for a renewed focus on driving shareholder returns and profitability, while others question whether the current board can work effectively after such a public dispute. One analyst noted, "It remains to be seen if the board will be able to function effectively. In my view, this will be resolved by the votes of shareholders at the next annual general meeting." The Securities Investors Association (Singapore) had previously posed questions to CDL about Dr Wu's roles at the group's subsidiary and sought clarity on the management structure and decision-making process at CDL. The company's annual general meeting is likely to be held on 23 Apr 2025.