CDL Chairman’s Son’s Denial of Attempt to Oust Him "Misses the Point", He Claims
Kwek Leng Beng, the chairman of City Developments Ltd (CDL), has alleged that his son’s denial of an attempt to oust him "misses the point" in the ongoing dispute between the two. The elder Kwek made this claim in a statement late on Friday, February 28, in which he stressed that protecting good governance, including the office of the executive chairman, is crucial.
Kwek Leng Beng’s Statement
In his statement, Kwek Leng Beng claimed that the statements made by his son, Sherman Kwek, regarding the court’s remarks on their ongoing dispute are "misleading". He emphasized that the court hearing on February 26 only halted the implementation of certain resolutions, and the two additional independent directors appointed to the board are unable to act, pending any further court order. He also pointed out that the changes to the board committees and the management of the relevant CDL subsidiaries are frozen until further notice.
Sherman Kwek’s Statement Contradicts Kwek Leng Beng’s Claims
On Thursday, Sherman Kwek, the CEO of CDL, released a statement claiming that his group had failed in their court application to reverse certain resolutions. This contradicts Kwek Leng Beng’s assertion that the court action had halted the "serious lapses of corporate governance" on February 26.
Corporate Governance Concerns
Kwek Leng Beng expressed concerns about the appointment of two new directors, Jennifer Duong Young and Wong Su Yen, which he believes was done without proper vetting and due diligence. He also alleged that his son and his group had bypassed the nomination committee, contrary to corporate governance principles and Singapore Exchange’s listing rules.
Kwek Leng Beng’s Allegations
In his statement, Kwek Leng Beng repeated his allegations that his son and his group are attempting to undermine and disrupt the governance structure of CDL. He claimed that their actions are causing significant turmoil and that it is necessary to protect the interests of CDL and its shareholders.
Philip Yeo’s Statement
Philip Yeo, a non-independent non-executive director of CDL, echoed Kwek Leng Beng’s concerns, stating that the alleged corporate governance lapses by the majority directors are a serious issue. He urged Sherman Kwek to focus on making back the S$1.9 billion of shareholders’ losses through Sincere Properties and other losses from UK property investments, rather than pursuing personal grievances.
Conclusion
The ongoing dispute between Kwek Leng Beng and his son, Sherman Kwek, continues to unfold, with both parties making contradicting claims. While Kwek Leng Beng believes that his son’s denial of an attempt to oust him misses the point, Sherman Kwek maintains that his group had failed in their court application to reverse certain resolutions. It remains to be seen how this dispute will ultimately be resolved.
FAQs
Q: What are the main issues in the dispute between Kwek Leng Beng and his son, Sherman Kwek?
A: The main issues include allegations of corporate governance lapses, attempts to undermine the governance structure of CDL, and a dispute over the appointment of new directors.
Q: What is the current status of CDL’s board of directors?
A: The two additional independent directors appointed to the board are unable to act, pending further court order, and the changes to the board committees and management of the relevant CDL subsidiaries are frozen until further notice.
Q: Who are the legal teams representing the parties involved in the dispute?
A: Kwek Leng Beng and three other directors are represented by Senior Counsel Lok Vi Ming of LVM Law Chambers, while Sherman Kwek and the six directors in his group are represented by Julian Tay of Lee & Lee.
