Singapore Billionaire Kwek Family $3.4 Billion Property Giant City Developments Limited (CDL) in Boardroom Fight Between Chairman Kwek Leng Beng Age 83 & His Son CEO Sherman Kwek Age 49 Who Attempted a Boardroom Coup to Appoint Independent Directors Without Proper Review, Kwek Leng Beng Released Statement to Dismiss His Son as CEO with Nephew Kwek Eik Sheng to Serve as Interim CEO & Filed Lawsuit Against Sherman Kwek & 6 Individuals, Sherman Kwek Appointed as CDL CEO in 2018, Requested Share Trading Halt & Cancelled FY2024 Results Briefing, Share Price is -14.3% in Last 12 Months & -47.5% in Last 5 Years, CDL Founded in 1963 & Acquired by Hong Leong Group in 1972, Hong Leong Group is Southeast Asia Conglomerate Founded by Kwek Leng Beng Father Kwek Hong Png, Kwek Family Fortune at $11 Billion
26th February 2025 | Hong Kong
Singapore billionaire Kwek family property giant City Developments Limited (CDL, $3.4 billion market value) is in a boardroom fight between Chairman Kwek Leng Beng (Age 83) & his son CEO Sherman Kwek (Age 49), who “attempted a Boardroom Coup” to appoint Independent Directors without proper review (According to Kwek Leng Beng). Kwek Leng Beng released a statement to dismiss his son as CEO with nephew Kwek Eik Sheng to serve as interim CEO, and filed a lawsuit against Sherman Kwek & 6 individuals in Singapore court. Sherman Kwek was appointed as CDL CEO in 2018. CDL requested share trading halt & cancelled the FY2024 results briefing. CDL share price is -14.3% in last 12 months & -47.5% in last 5 years. CDL was founded in 1963, and acquired by Hong Leong Group in 1972. Hong Leong Group is a Southeast Asia conglomerate founded by Kwek Leng Beng father Kwek Hong Png. The Kwek family fortune is estimated at more than $11 billion. CDL Chairman Kwek Leng Beng Statement (Extracts): “It is with deep concern that I address recent events regarding the serious lapses of corporate governance at City Developments Limited (“CDL”, together with its subsidiaries, the “Group”). Sherman Kwek, Philip Lee, Wong Ai Ai and a group of directors acting with them, have sought to consolidate control of the Board and the Group. Contrary to established corporate governance principles, the SGX Listing Rules and the Code of Corporate Governance, they bypassed the Nomination Committee (NC) on two occasions to change the composition of the Board and hastily followed up by making significant changes to Board committees and the governance of the Group. In response, we have filed court papers yesterday to set things right. This is necessary to deal with this attempted coup at the Board level and restore corporate integrity. We intend to change the CEO at the appropriate time. We will continue to explore all legal options available to us to vigorously defend and protect the interests of CDL and its shareholders … … On 7 February 2025, the Board meeting was held with no vote being taken. Later that night, without regard for the caution in the legal advice received and in obvious disregard for the profile and reputation of CDL, a Directors’ Resolution in Writing (DRIW) for the appointment of the two new directors was circulated and approved within hours without having gone through the typical NC process that CDL has always adhered to over the years. This confirmed that Sherman Kwek, Philip Lee, Wong Ai Ai and the other directors acting with them had pre-planned this move. I was left with no choice but to send an email on 8 February 2025 seeking Sherman’s dismissal from the position of Group Chief Executive Officer. His role in circumventing good governance and consolidating power through the irregular appointment of two new directors was the latest of a long series of missteps. On 9 February 2025, the reconstituted Board, led by Phillip Lee, objected to Chairman’s attempt to dismiss Sherman. Indeed, this is not the first time Sherman’s decisions have put CDL in a precarious position | More info below:
“ Singapore Billionaire Kwek Family $3.4 Billion Property Giant City Developments Limited (CDL) in Boardroom Fight Between Chairman Kwek Leng Beng Age 83 & His Son CEO Sherman Kwek Age 49 Who Attempted a Boardroom Coup to Appoint Independent Directors Without Proper Review, Kwek Leng Beng Released Statement to Dismiss His Son as CEO with Nephew Kwek Eik Sheng to Serve as Interim CEO & Filed Lawsuit Against Sherman Kwek & 6 Individuals, Sherman Kwek Appointed as CDL CEO in 2018, Requested Share Trading Halt & Cancelled FY2024 Results Briefing, Share Price is -14.3% in Last 12 Months & -47.5% in Last 5 Years, CDL Founded in 1963 & Acquired by Hong Leong Group in 1972, Hong Leong Group is Southeast Asia Conglomerate Founded by Kwek Leng Beng Father Kwek Hong Png, Kwek Family Fortune at $11 Billion “
CDL Chairman Kwek Leng Beng Statement (Extracts): “It is with deep concern that I address recent events regarding the serious lapses of corporate governance at City Developments Limited (“CDL”, together with its subsidiaries, the “Group”). Sherman Kwek, Philip Lee, Wong Ai Ai and a group of directors acting with them, have sought to consolidate control of the Board and the Group. Contrary to established corporate governance principles, the SGX Listing Rules and the Code of Corporate Governance, they bypassed the Nomination Committee (NC) on two occasions to change the composition of the Board and hastily followed up by making significant changes to Board committees and the governance of the Group. In response, we have filed court papers yesterday to set things right. This is necessary to deal with this attempted coup at the Board level and restore corporate integrity. We intend to change the CEO at the appropriate time. We will continue to explore all legal options available to us to vigorously defend and protect the interests of CDL and its shareholders … … On 7 February 2025, the Board meeting was held with no vote being taken. Later that night, without regard for the caution in the legal advice received and in obvious disregard for the profile and reputation of CDL, a Directors’ Resolution in Writing (DRIW) for the appointment of the two new directors was circulated and approved within hours without having gone through the typical NC process that CDL has always adhered to over the years. This confirmed that Sherman Kwek, Philip Lee, Wong Ai Ai and the other directors acting with them had pre-planned this move. I was left with no choice but to send an email on 8 February 2025 seeking Sherman’s dismissal from the position of Group Chief Executive Officer. His role in circumventing good governance and consolidating power through the irregular appointment of two new directors was the latest of a long series of missteps. On 9 February 2025, the reconstituted Board, led by Phillip Lee, objected to Chairman’s attempt to dismiss Sherman. Indeed, this is not the first time Sherman’s decisions have put CDL in a precarious position. During his leadership:
- The Sincere Property debacle led to a staggering S$1.9 billion loss for CDL in FY2020.
- Poor investment decisions in the UK property market resulted in significant financial
losses, contributing to a 94% profit decline in 1H 2023. - CDL’s share price has consistently underperformed peers since he assumed leadership in 2018, reflecting eroded investor confidence and shareholder concerns over strategic missteps.
As a father, firing my son was certainly not an easy decision. I accept that business decisions are difficult and young people may make business mistakes in their careers and that is understandable, but circumventing corporate governance laws is a red line. As Chairman, my responsibility is to CDL, its shareholders, and its future. I take my role as Executive Chairman seriously and have always prioritised the interests of all shareholders, not just those of my family. The stakes are simply too high to allow reckless power grabs to destabilise the company.
… … For over six decades, I have been dedicated to building CDL into a globally recognized real estate leader. My journey with CDL began in the late 1960s, and since then, I have overseen its transformation from a struggling entity into a market leader. In 1971, my father, Kwek Hong Png, together with my brother, Kwek Leng Joo, and I, acquired control of a loss-making CDL, recognizing its untapped potential. Under my leadership, CDL expanded its real estate portfolio, pioneering landmark developments that have defined Singapore’s urban landscape. Beyond property development, I spearheaded the Group’s foray into hospitality, growing Millennium & Copthorne Hotels into Singapore’s largest international hotel group and one of the largest hotel owners and operators in the world. CDL’s six-decade track record of success is built on financial prudence, strategic foresight, and sound governance. These are principles I have upheld unwaveringly throughout over the years. It is precisely this commitment to long-term value creation and corporate stability that is now under attack. The reckless actions of a faction seeking to consolidate unchecked control not only undermine the foundations of CDL’s governance but also put at risk the very legacy we have built over the decades. This situation will set a dangerous precedent unless it is rectified. It is imperative that all boardroom decisions adhere to the principles of transparency, integrity, and due process. I urge all shareholders and stakeholders to stand with us in safeguarding CDL’s future. Your support is crucial in restoring strong governance, maintaining investor confidence, and ensuring long-term value creation.”
City Developments Limited (CDL) is a leading global real estate company with a network spanning 163 locations in 29 countries and regions. Listed on the Singapore Exchange, the Group is one of the largest companies by market capitalisation. Its income-stable and geographically diverse portfolio comprises residences, offices, hotels, serviced apartments, student accommodation, retail malls and integrated developments. Hong Leong Investment Holdings Pte. Ltd. is the immediate and ultimate holding company of CDL. Hong Leong Finance Limited is a related company under the Hong Leong Group of companies. Millennium & Copthorne Hotels Limited is a subsidiary of CDL.
Kwek Leng Beng, Chairman – Mr Kwek has extensive experience in the real estate business. He joined City Developments Limited (CDL) in the late 1960s and since then has contributed significantly to building CDL’s six decades of track record. He grew the Group’s hospitality arm and has been actively involved in its development into Singapore’s largest international hotel group and one of the largest hotel owners and operators in the world. He also has extensive experience in the finance business, having grown with the original Hong Leong Finance Limited from day one, which has since merged its finance business with Singapore Finance Limited (now known as Hong Leong Finance Limited). He is also experienced in the trading and manufacturing sectors. Mr Kwek has received numerous accolades. In 1997, he was named “Businessman of the Year 1996” by Singapore Business Awards, organised by The Business Times and DHL. In 2012, he was jointly awarded the “Partners in the Office of the CEO” award in the Brendan Wood International – Securities Investors Association Singapore (SIAS) TopGun CEO Designation Award with the late Mr Kwek Leng Joo (former Deputy Chairman of CDL). This award is given to CEOs who are best in class as rated by shareholders. In 2014, he received the inaugural Real Estate Developers’ Association of Singapore (REDAS) Lifetime Achievement Award which honours a pioneering group of real estate leaders. He received the Singapore Chinese Chamber of Commerce and Industry (SCCCI) SG50 Outstanding Chinese Business Pioneers Award in 2015. The award honours the Republic’s outstanding Chinese business pioneers and their exemplary contributions to nation-building. That same year, he was accorded the Lifetime Achievement Award from Hotel Investment Conference Asia Pacific (HICAP). This accolade honours exceptional individuals who have distinguished themselves through accomplishments and contributions to the hotel industry. In 2017, he was presented the Lifetime Achievement Award at the Asia Pacific Entrepreneurship Awards organised by Enterprise Asia, a regional non-governmental organisation for entrepreneurship. The award was in recognition of outstanding achievements, visionary leadership and steadfast dedication that led to the successful growth of the Hong Leong Group for over five decades. That same year, he clinched the inaugural Global Blue Ocean Shift Award, given at the Global Entrepreneurship Community Summit in Kuala Lumpur. Mr Kwek was awarded the Singapore Tatler Diamond Award (Lifetime Achievement) 2018, in recognition of his exceptional leadership that led Hong Leong Group to grow into a globally diversified enterprise. In 2020, Mr Kwek received on behalf of Hong Leong Group, the EY Family Business Award of Excellence. It celebrated the Group’s successful, sustainable and long-term oriented strategy, effective and transparent corporate governance approach, and significant socio-economic contributions. Mr Kwek holds a law degree, LL.B. (London) and is also a fellow of The Institute of Chartered Secretaries and Administrators. He was also conferred an Honorary Doctorate of Business Administration in Hospitality from Johnson & Wales University (Rhode Island, US) and an Honorary Doctorate from Oxford Brookes University (UK).
Sherman Kwek, CEO – Mr Sherman Kwek assumed his role as CDL’s Group Chief Executive Officer (Group CEO) in January 2018 after serving as the CEO-designate from August 2017. He was appointed as an Executive Director in May 2019 and concurrently holds the position of Executive Chairman of CDL China Limited since April 2016. He was previously the Deputy CEO and Chief Investment Officer of CDL. He has been spearheading the Group’s expansion in Singapore, China, Japan, Australia and the United Kingdom for over a decade. Under his leadership, the Group embarked on a Growth, Enhancement and Transformation (GET) strategy to expand its local and international presence, enhance its existing portfolio, strengthen recurring income streams, develop a fund management business and enable significant transformation through strategic investments and innovation, all of which with the ultimate goal of driving strong performance and creating lasting value for all shareholders. Throughout his career, Mr Kwek has held various senior management roles including serving as the CEO of Hong Kong-listed City e-Solutions Limited, an Executive Director of HL Global Enterprises Limited and the Chief Operating Officer of Thakral Corporation Ltd. He also worked at RECAP Investments Limited, a real estate private equity fund. Mr Kwek started his career in New York in venture capital and investment banking before joining the US division of Millennium & Copthorne Hotels Limited. He has experience in the areas of investments, mergers and acquisitions, real estate, hospitality and technology, and has worked in New York, Hong Kong, Shanghai and Singapore. He graduated from Boston University with a Bachelor of Science in Business Administration, majoring in Finance and Marketing with a minor in Psychology.
Singapore Billionaire Kwek Family $3.4 Billion Property Giant City Developments Limited (CDL) in Boardroom Fight Between Chairman Kwek Leng Beng Age 83 & His Son CEO Sherman Kwek Age 49 Who Attempted a Boardroom Coup to Appoint Independent Directors Without Proper Review, Kwek Leng Beng Released Statement to Dismiss His Son as CEO with Nephew Kwek Eik Sheng to Serve as Interim CEO & Filed Lawsuit Against Sherman Kwek & 6 Individuals, Sherman Kwek Appointed as CDL CEO in 2018, Requested Share Trading Halt & Cancelled FY2024 Results Briefing, Share Price is -14.3% in Last 12 Months & -47.5% in Last 5 Years, CDL Founded in 1963 & Acquired by Hong Leong Group in 1972, Hong Leong Group is Southeast Asia Conglomerate Founded by Kwek Leng Beng Father Kwek Hong Png, Kwek Family Fortune at $11 Billion
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