A big fight between father and son is causing chaos at City Developments Ltd (CDL), a major property company in Singapore. Kwek Leng Beng, the 84-year-old chairman, and his son, Sherman Kwek, the CEO, are arguing publicly. This family battle has become very serious, with accusations of bad business choices and rule-breaking.
The problems started when CDL suddenly stopped trading its shares and cancelled a meeting about its finances. Kwek Leng Beng accused his son of trying to take control of the company. Sherman, along with some board members, had brought in new directors, which the elder Kwek saw as a takeover attempt. To fight back, Kwek Leng Beng filed a lawsuit to prevent these changes in the company’s leadership.
Sherman Kwek, who is 49 and graduated from Boston University, denied that he tried to push his father out. He called his father’s legal actions an “ambush.” He suggested that Catherine Wu, an advisor on the board, is the real problem, saying she has been interfering in company affairs.
This disagreement has revealed deeper issues within CDL, which is not just Singapore’s biggest property company but also part of a family worth $11.5 billion. Earlier this year, Kwek Leng Beng tried to fire Sherman as CEO, citing a big financial loss of $1.4 billion back in 2020 and poor investments in the UK. CDL’s stock has also been performing poorly under Sherman’s leadership since 2018.
The father feels it’s important to protect the family’s legacy and believes that Sherman’s actions could jeopardize everything they have built over the years. Kwek Leng Beng stated that “people make mistakes, but breaking corporate rules is unacceptable.” He added that firing his son wasn’t easy but necessary to protect the company.
Shares of CDL are still on hold, and major financial firms have downgraded the company. CDL has grown a lot since Kwek Leng Beng and his family started it as a struggling business in 1971. Now, it includes hotels, apartments, and offices around the world.
With the courts now involved, this family fight is far from over. Sherman defends his decisions as good for the company, while Kwek Leng Beng insists that undermining his power is an attempt at a takeover. He believes the court will ultimately decide who is right.
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