The heir of Singapore’s richest real estate family has strongly rejected accusations from his father that he is leading a boardroom coup. Sherman Kwek, CEO of City Developments Ltd. (CDL), responded to claims from his father, billionaire patriarch Kwek Leng Beng, asserting that the root cause of the family dispute lies with a controversial adviser to the family’s business empire.
In a statement issued late Thursday, Sherman Kwek denied any attempts to oust the chairman, Kwek Leng Beng. “There has been no attempt by us to remove the chairman,” Sherman said, emphasizing that the real issue is the involvement of the adviser, Catherine Wu. He also dismissed the elder Kwek’s allegations of a “boardroom coup” led by the majority directors, calling it “incorrect” and a distraction from the core issue.
This public response marks an escalation in the ongoing feud that has shaken the Kwek family, one of Singapore’s wealthiest and most influential business dynasties. Kwek Leng Beng filed a lawsuit, accusing Sherman and other directors of trying to seize control of the board and citing serious lapses in corporate governance.
One major point of contention is the appointment of two new directors to CDL’s board earlier this month, bypassing the usual nomination process, as outlined in Kwek Leng Beng’s statement.
The growing conflict has placed City Developments Ltd., Singapore’s largest publicly-listed real estate developer, into turmoil. Shares of the $3.4 billion company remain suspended, continuing to struggle after a significant decline in profits, with firms such as JPMorgan Chase & Co. downgrading its stock.
Sherman Kwek’s latest comments target Catherine Wu, an adviser to CDL’s hotel subsidiary. He accused her of wielding “enormous influence” over his father and intervening in company matters far beyond her advisory role. “Her actions have raised serious concerns regarding corporate governance,” Sherman Kwek stated. He further revealed that the board had passed a resolution on February 21 to terminate Wu’s advisory agreement, asserting that she should no longer hold any power over CDL’s operations.
Representatives for Catherine Wu were unavailable for comment, and requests for statements from Kwek Leng Beng’s team went unanswered outside business hours.
The younger Kwek also criticized his father for allegedly misrepresenting the current state of legal proceedings. Kwek Leng Beng had stated that the two new directors agreed not to exercise any authority until a court ruling is made. However, Sherman Kwek clarified that the majority of the board had voluntarily chosen to maintain the status quo until a full hearing could take place.
In his final remarks, Sherman Kwek rejected his father’s claims that the minority directors had successfully halted any corporate governance lapses at CDL, calling the suggestion “unfortunate.”
The ongoing battle for control of CDL’s board has not only brought the Kwek family’s internal disputes to the forefront but has also raised significant concerns about the company’s future direction and governance practices.
