A dramatic family rift at the heart of City Developments Limited (CDL), one of Singapore’s largest property developers, has erupted into a public battle for control, pitting executive chairman Kwek Leng Beng against his son, Sherman Kwek, the company’s group chief executive officer. The conflict, which surfaced on 26 February, has raised serious questions about corporate governance, family dynamics in business, and the future stability of a company with a $4.7 billion market presence across nearly 30 countries. As legal proceedings unfold, the dispute threatens to undermine investor confidence in a firm already grappling with financial challenges.
The 84-year-old Kwek Leng Beng, a veteran tycoon who has steered CDL since the 1970s, accused his son and a group of board members of orchestrating an “attempted coup” to seize control of the company’s board. In a series of public statements, he revealed that he had filed court papers to address what he described as “serious lapses of corporate governance.” Sherman Kwek, 49, along with board members Philip Lee Jee Cheng, Wong Ai Ai, and others, are alleged to have bypassed established protocols to alter the board’s composition and restructure key committees.
“This is necessary to deal with this attempted coup at the board level and restore corporate integrity,” Kwek Leng Beng stated, adding that the company intends to replace Sherman as CEO at an “appropriate time” to protect the interests of CDL and its shareholders. 
In response, Sherman Kwek expressed disappointment over what he called “extreme actions” by his father and a minority of the board. Speaking on behalf of the majority of CDL’s directors, he clarified that the disagreement centred on the size and make-up of the board, not on ousting the chairman. “This has never been about ousting our esteemed chairman,” he insisted in a statement.
The legal wrangling took a temporary turn late on 26 February after a closed-door court hearing in Singapore. Kwek Leng Beng announced that Sherman and the implicated directors had agreed not to take further action to alter CDL’s board committees or management of certain subsidiaries until further notice from the court. Additionally, the company’s nominating and remuneration committee, which oversees board appointments, has been suspended from acting further. “The board committees and the management of the relevant subsidiaries are now safe from further attempts to destabilise, dismantle and reconstitute them,” the elder Kwek declared.
A Breach of Governance?
At the core of the dispute are allegations of procedural irregularities in the appointment of two new independent directors, Jennifer Duong Young and Wong Su-Yen, on 7 February. Kwek Leng Beng claims that these appointments were rushed through without proper vetting or consultation with the nominating committee (NC), contravening the Singapore Exchange (SGX) listing rules and the Code of Corporate Governance. He pointed to a series of events beginning in late January, on the eve of Chinese New Year, when the corporate secretary informed the board of nominations by Philip Lee and Wong Ai Ai for the new directors.
Despite objections from the NC chairman, Chong Yoon Chou, and legal advice highlighting the breach of governance norms, the appointments were approved via a Directors’ Resolution in Writing within hours of a board meeting on 7 February. Kwek Leng Beng described this as a “pre-planned” move by Sherman’s group to consolidate power, alleging that it was part of a broader effort to sideline independent oversight and diminish the chairman’s authority.
“As an executive chairman, notwithstanding my decades of institutional knowledge, I am not able to have a position on the newly formed nominating and remuneration committee,” Kwek Leng Beng lamented. He further accused Sherman’s faction of restructuring the committee to grant themselves unchecked control over key management appointments and board decisions.
The elder Kwek’s frustration culminated in a call for Sherman’s dismissal as CEO on 8 February, a move swiftly opposed by the reconstituted board led by Philip Lee. “Firing my son was certainly not an easy decision,” Kwek Leng Beng admitted. “But circumventing corporate governance laws is a red line. My responsibility is to CDL, its shareholders, and its future.”
A History of Missteps?
This is not the first time Sherman Kwek’s leadership has come under scrutiny. His father cited several strategic errors during Sherman’s tenure as CEO since 2018, including a $1.9 billion loss tied to the Chinese developer Sincere Property Group in 2020 and a 94 per cent drop in profit in the first half of 2023 due to ill-timed investments in Britain’s property market. Kwek Leng Beng also highlighted the underperformance of CDL’s share price over the past seven years, attributing it to “eroded investor confidence and shareholder concerns over strategic missteps.”
CDL, which celebrated its 60th anniversary in 2023, has grown from humble beginnings into a global player under Kwek Leng Beng’s stewardship. Together with his brother Kwek Leng Joo and their father Kwek Hong Png, he took control of a loss-making CDL in 1971, transforming it into a powerhouse in property and hospitality. The current feud, however, casts a shadow over this legacy, exposing deep fissures within the family and the boardroom.
To stabilise the company, Kwek Leng Beng has proposed Sherman’s removal as CEO, suggesting that chief operating officer Kwek Eik Sheng serve as interim CEO while a professional replacement is sought. He also pledged to strengthen CDL’s governance framework to prevent future violations, ensuring that no single group can override established safeguards.
Wider Implications for Corporate Singapore
The public nature of this family feud has drawn attention from industry watchers and governance experts in Singapore, a global financial hub known for its stringent corporate standards. Professor Lawrence Loh, director at the Centre for Governance and Sustainability at the National University of Singapore Business School, emphasised the sacrosanct nature of corporate governance, particularly in listed family businesses. “Due diligence is essential to assure the confidence of stakeholders, including shareholders,” he noted, adding that the ongoing events at CDL likely involve complexities beyond what is currently visible.
Prof Loh also underscored the importance of routing director appointments through the nominating committee to uphold governance standards, a process allegedly bypassed in this case. Meanwhile, the Securities Investors Association (Singapore) (Sias), led by president David Gerald, urged the board to resolve the issue amicably in the best interest of all stakeholders. Ironically, Sherman Kwek was appointed as a patron of Sias in August 2024, adding another layer of complexity to the unfolding drama.
A spokesperson for the SGX Group declined to comment on specifics but reiterated that issuers are expected to maintain proper processes for director appointments and disclose material developments. CDL shares, which closed at $5.12 on 25 February, remain under a trading halt, and the company cancelled its scheduled 2024 results briefing on the morning of 26 February, further fuelling uncertainty among investors.
Family Businesses Under Strain
The CDL saga is emblematic of the challenges faced by family-run conglomerates in South East Asia, where succession disputes and governance issues often intersect. In Singapore, where family businesses form a significant part of the economic landscape, such conflicts can have far-reaching consequences for market stability and investor trust. The Kwek family’s public spat raises questions about the balance between familial loyalty and professional accountability, particularly in publicly listed firms where minority shareholders have a stake.
For Kwek Leng Beng, the priority appears to be safeguarding CDL’s legacy and ensuring its long-term viability. “The stakes are simply too high to allow reckless power grabs to destabilise the company,” he warned. Yet, the emotional toll of taking legal action against his own son is evident in his statements, reflecting the personal cost of prioritising corporate duty over family ties.
On the other side, Sherman Kwek’s defence suggests a generational clash over vision and control. While he denies any intent to oust his father, the rapid moves to reshape the board and committees indicate a push for greater influence, potentially at odds with established norms. Whether this reflects a genuine concern for CDL’s future direction or a bid for power, as his father alleges, remains unclear and may only be resolved through the ongoing legal process.
Uncertain Future for CDL
As the court proceedings continue, the immediate future of CDL hangs in the balance. The suspension of board actions provides a temporary reprieve, but deeper structural and familial tensions are unlikely to dissipate without significant compromise or external intervention. For shareholders, the uncertainty surrounding leadership and governance could further impact the company’s already struggling share price, while employees and partners may face disruptions in strategic decision-making.
Beyond CDL, the dispute serves as a cautionary tale for family businesses navigating the complexities of succession and corporate governance in a globalised economy. In Singapore, where transparency and accountability are cornerstones of the business environment, the outcome of this case could set important precedents for how such conflicts are managed in the future.
For now, all eyes are on the Kwek family and the Singapore court, as a once-unified dynasty grapples with a very public fracture. The resolution of this power struggle will not only shape CDL’s trajectory but also offer insights into the resilience of family-run enterprises in the face of internal discord.
