Sherman Kwek Criticises “Extreme Measures” as CDL Chairman Sues Over Alleged Power Struggle

City Developments Limited (CDL) Group CEO Sherman Kwek has voiced his disappointment over what he described as “extreme actions” taken by his father, Executive Chairman Kwek Leng Beng, in response to an ongoing dispute regarding the company’s board structure.

The conflict escalated after Kwek Leng Beng filed a lawsuit on 26 February, alleging an attempted power grab by his son and certain board members. According to him, Sherman Kwek, along with directors Philip Lee and Wong Ai Ai, sought to consolidate control by bypassing CDL’s nomination committee and unilaterally appointing two new independent directors—Jennifer Duong Young and Wong Su Yen.

In a statement released on behalf of the majority of CDL’s board, Sherman Kwek rejected these allegations, stating that the board’s focus has always been on strengthening corporate governance and enhancing decision-making. He also pointed out that his father’s lawsuit was not authorised by most board members, clarifying that there was never an intention to remove the chairman.

Kwek Leng Beng, however, insisted that his legal action was necessary to safeguard CDL’s governance standards and shareholder interests. He revealed that on 8 February, he had called for his son’s dismissal as CEO, citing concerns over governance breaches and irregular appointments.

As legal proceedings unfold, CDL confirmed that Sherman Kwek remains CEO unless a formal board resolution dictates otherwise. The company assured stakeholders that business operations continue as usual, although CDL’s stock trading was suspended on 26 February.

Philip Yeo Liat Kok, an independent director supporting Kwek Leng Beng, stated that the court intervention aims to invalidate the recent board changes and restore previous governance structures. He claimed that repeated internal attempts to resolve the issue failed, leaving legal action as the only option.

The elder Kwek also hinted at leadership succession plans, stating that COO Kwek Eik Sheng—his nephew—would take over on an interim basis until a professional CEO is appointed.

The dispute has drawn significant attention, with analysts and employees expressing surprise over the public nature of the conflict. Despite past challenges, CDL has weathered governance issues before, including losses linked to Sincere Property Group in 2020, which led to multiple board resignations.

While internal tensions remain, market sentiment appears cautiously optimistic—with pre-suspension order queues reflecting a positive price adjustment.