On Feb 26, Mr Sherman Kwek expressed disappointment over his father’s “extreme actions” in response to a disagreement. - ST
SINGAPORE: City Developments Limited (CDL) group chief executive Sherman Kwek and six board directors, called out by CDL executive chairman Kwek Leng Beng for an “attempted coup” to take control of the board, have appointed lawyers to represent them in court.
On Feb 26, court hearing information showed they had no legal representation, but by Feb 27, the records were updated to reflect their engagement of law firm Lee & Lee. This move escalates the court battle over control of the CDL board.
On one side is Kwek Leng Beng, supported by board directors Philip Yeo, Colin Ong and Chong Yoon Chou. He alleges that a faction led by his son Sherman Kwek, alongside directors Philip Lee Jee Cheng, Wong Ai Ai, and others, attempted to consolidate power over the board and CDL. On Feb 25, Kwek Leng Beng’s camp filed High Court papers to “set things right”.
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“This is necessary to address the attempted coup and restore corporate integrity,” said Mr Kwek Leng Beng, who turns 84 in 2025.
In a Feb 26 statement, he claimed Sherman Kwek’s group bypassed the nomination committee twice to alter board composition and swiftly implemented significant governance changes. He said these actions violated corporate governance principles, Singapore Exchange listing rules and the Code of Corporate Governance.
His camp secured an initial legal victory on Feb 26. Following a closed-door High Court hearing, Kwek Leng Beng said that newly appointed directors Jennifer Duong Young and Wong Su-Yen, who were allegedly installed “irregularly and hastily” on Feb 7, have agreed not to exercise their powers until further court notice.
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Additionally, Sherman Kwek, Philip Lee Jee Cheng, Wong Ai Ai and board directors who acted in concert with the trio also undertook not to make further board or management changes until the court rules, Kwek Leng Beng said.
The irregularly constituted nominating and remuneration committee has also been suspended from further actions, the older Kwek said.
Kwek Leng Beng and his supporting directors are represented by LVM Law Chambers, led by Senior Counsel Lok Vi Ming, with a team comprising joint managing director Joseph Lee, associate director Qabir Singh Sandhu and associate Li Jiabao.
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The alleged coup faction, consisting of CEO Sherman Kwek and board directors Carolina Chan Swee Liang, Desbaillets Daniel Marie Ghislain, Wong Su-Yen, Jennifer Duong Young, Philip Lee, and Wong Ai Ai, is represented by Lee & Lee, with senior partner Julian Tay and partners Melissa Ng and Matthew Saw Seang Kuan.
On Feb 26, Sherman Kwek expressed disappointment over his father’s “extreme actions” in response to a disagreement regarding the board’s size and composition.
Both legal teams are scheduled for another closed-door High Court hearing on March 4.
The Straits Times understands that the court proceedings are at an early stage, but the High Court at the hearing next week may provide timelines and guidance on how the lawsuit is to proceed. - The Straits Times/ANN
