City Developments Limited (CDL) is embroiled in a leadership dispute that has escalated to the courts, following allegations of governance breaches by Sherman Kwek, the company’s CEO. Executive Chairman Kwek Leng Beng has expressed serious concerns about attempts to undermine CDL’s governance structure, leading to a court application to address these issues.
Kwek Leng Beng, in his official statement, emphasised the importance of maintaining CDL’s integrity and governance. He accused Sherman Kwek and certain directors of bypassing the Nomination Committee twice, in violation of the Singapore Exchange (SGX) Listing Rules and the Code of Corporate Governance. “The urgency of our application stemmed from our serious concerns about Sherman and the directors acting with him attempting to undermine and disrupt the governance structure of CDL,” he stated.
The court has since frozen changes to the Board committees and the management of relevant CDL subsidiaries, pending further orders. Kwek Leng Beng highlighted that the actions taken were necessary to protect CDL and its shareholders during this period of significant turmoil.
Philip Yeo, a Non-Independent Non-Executive Director at CDL, echoed these concerns, accusing the CEO and his allies of intentionally circumventing the Nomination Committee to appoint two new independent directors. Yeo criticised the CEO’s focus on grievances rather than addressing the $1.9 billion (£1.5 billion) in shareholder losses through Sincere Properties and other UK investments.
Both leaders underscored the need for the CEO to collaborate with the entire Board to prioritise shareholder interests. As the matter awaits a court decision, CDL’s governance practices remain under scrutiny, with potential implications for its leadership and operational strategies.
“`
This news story was carefully selected and published by a human editor, though the content itself was AI-generated. If you spot an error, please report it here.
