SINGAPORE: City Developments Limited (CDL) executive chairman Kwek Leng Beng said his son Sherman and other directors acting with him have agreed not to take further action after a court hearing on Wednesday (Feb 26).
He said in a statement on Wednesday night that the “serious lapses” of corporate governance at CDL have now been halted following the court hearing.
Mr Kwek Leng Beng had earlier in the day announced that he was taking his son, group CEO Sherman Kwek, to court over alleged governance lapses and an attempted power grab at the board level.
The older Kwek accused his son and a group of directors, including Mr Philip Lee and Ms Wong Ai Ai, of bypassing CDL’s nomination committee to push through board changes without proper review.
The dispute centres on events that began on Jan 28, when an email was sent to the board nominating two new independent directors.
“The two new directors, irregularly and hastily appointed on Feb 7, 2025 by means of directors’ resolutions in writing, have undertaken not to exercise any powers as directors until further notice of the court,” Mr Kwek Leng Beng said in his statement late on Wednesday.
“Sherman Kwek, Philip Lee, Wong Ai Ai and the remaining directors acting in concert with them, have undertaken not to take any further actions regarding their attempted changes to the board committees and management of certain CDL’s subsidiaries, until further notice of court.
“In addition, the irregularly constituted nominating and remuneration committee has been suspended from taking further actions.”
