Kwek Leng Beng, Chairman of City Developments Ltd. and Sherman Kwek, CEO … More
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Billionaire Kwek Leng Beng, City Developments Ltd. (CDL) and his son Sherman promised to maintain the highest standards of corporate governance after a board fight between two senior executives made the company's shares declare stake.
The dispute between the father and son was revealed in late February after the company's executive chairman Kwek Leng Beng sued group CEO Sherman to control Singapore-listed real estate developers.
In the case filed in the Singapore High Court, Elder Kwick accused Sherman of inciting a board coup by appointing two new board members without a nomination committee review. The lawsuit has since been withdrawn and both agreed to resolve their differences.
“The board and management team will continue to strengthen the group’s business and ensure long-term value creation while maintaining the highest governance standards,” CDL Elderly said in its latest annual report released on Tuesday. “We remain focused on providing shareholder value.”
This year, the city development stock price fell 12% and the company lost its seat as Singapore’s most valuable listed property company. CDL Report In February, net profit in 2024 fell by 37%, down from the previous year’s net profit to SGD 201.3 million (USD 150.5 million).
“Our commitment to the highest standards of corporate governance and transparency is the guiding principle of the group as we work to improve the challenges,” Sherman said in the annual report.
The dispute has attracted the attention of one of Singapore's wealthiest families, estimated at $11.5 billion. It was settled after Catherine Wu, a consultant to the board quarrel center, resigned.
CDL discusses this dispute extensively in its 2024 annual report. While appointing two new directors deviated from the company’s usual practice, the board said the actions were “necessary and appropriate” due to governance concerns related to WU’s role as a consultant to City Developments’ Hotel Arm Millennium & Copthorne.
