City Developments Limited (CDL) is embroiled in a corporate governance crisis as its Executive Chairman, Kwek Leng Beng, has raised serious concerns over recent boardroom manoeuvres. In a statement, Kwek accused Sherman Kwek, Philip Lee, Wong Ai Ai, and other directors of attempting to consolidate control of the board by bypassing the Nomination Committee (NC) and making unauthorised changes to board composition and governance.
The controversy began on 28 January 2025, when an email was sent nominating two additional independent directors without prior NC consultation. Despite objections from NC Chairman Chong Yoon Chou, a board meeting was requisitioned to push through these appointments. Legal advice received by the board highlighted that bypassing the NC could lead to non-compliance with governance codes, yet a Directors’ Resolution in Writing was circulated and approved on 7 February 2025.
Kwek has responded by filing court papers to address what he describes as an “attempted coup” and restore corporate integrity. He also announced plans to replace the CEO at an appropriate time, citing past financial missteps under Sherman Kwek’s leadership, including a $1.9b loss in 2020 and a 94% profit decline in the first half of 2023.
To stabilise CDL, Kwek proposes appointing Kwek Eik Sheng as interim CEO and reinforcing governance frameworks. He emphasised the importance of transparency and due process, urging shareholders to support efforts to safeguard CDL’s future. The situation remains tense, with potential implications for the company’s governance and leadership structure.
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