Son of billionaire Kwek Leng Beng says actions were not about 'ousting' father, after claims of ‘attempted coup' at CDL

The son of City Developments Limited (CDL) executive chairman Kwek Leng Beng, Sherman Kwek, said recent actions have "never been about ousting" the older Kwek after the latter claimed an “attempted coup” by his 49-year-old son and a group of directors including Philip Lee and Wong Ai Ai, who was allegedly acting to consolidate control of CDL’s board.

Sherman Kwek said it was "extremely disappointing" of the chairman's extreme actions

Sherman Kwek, on behalf of the majority of CDL Board Directors, said it was "extremely disappointing" that their Chairman and a minority of the City Developments Limited Board have decided to take these extreme actions regarding this disagreement around the size and make-up of the CDL Board.

He said that their focus as CEO and directors, as a Board majority and with clear guidance and support from their company and independent legal counsel, has always been to implement steps to improve governance.

"However, earlier today City Developments Limited suspended trading as this issue now comes before the courts, despite this legal action not being authorised by the majority of the Board," said the younger Kwek.

"To reiterate, this has never been about ousting our esteemed Chairman. These steps to strengthen our Board have purely been to ensure CDL has the highest standards of governance to which it has become known, and our collective decision-making as a Board is as robust as possible," he continued.

Saying that as the matter is now before the courts for adjudication, Kwek said they will not comment on the merits of the case and will make further announcements if there are any material developments.

Claims that son's group attempted to circumvent corporate governance laws

The older Kwek claimed that his son's group attempted to circumvent corporate governance laws and principles by bypassing the nomination committee (NC) twice to change the board composition without proper review.

CDL is a Singaporean multinational real estate company.

Top image via Hong Leong Group and CDL website.