City Developments Limited Executive Chairman Kwek Leng Beng poses with a scale model of the St Regis Residence during its launch ceremony in Singapore, June 1, 2006. Photo by Reuters
Senior establishment figures and trusted family friends reportedly helped mediate a halt to the public boardroom feud between Singaporean billionaire Kwek Leng Beng and his son at property giant City Developments Limited.
The chairman announced the truce late Wednesday, saying he was withdrawing his lawsuit against his son Sherman Kwek, which alleged that he sidestepped the firm’s nomination committee on a couple of occasions to change the board composition and made significant changes to committees and governance, CNA reported.
The senior figures are neutral parties that maintained communication with Leng Beng, CDL’s executive chairman, and his son Sherman Kwek, the firm’s group CEO, sources told The Straits Times.
The mediation gained momentum after Leng Beng said on March 4 that his long-time adviser, Catherine Wu, had stepped down from her “unpaid independent adviser” role at CDL’s hotel arm, Millennium & Copthorne Hotels.
Sherman previously accused Wu of being the underlying reason behind the dispute, claiming that she had interfered in matters beyond her scope and exerted significant influence.
He added that attempts to handle the situation sensitively were unsuccessful due to Wu’s “long relationship” with his father.
According to the late Wednesday announcement, both father and son would remain in their roles, and all current directors would retain their board positions.
“All the board members have agreed to put aside their differences for the greater good of CDL and its stakeholders,” Leng Beng said.
The halt provided temporary relief, but it did not completely resolve the broader corporate governance concerns and boardroom disagreements that surfaced during the dispute, analysts at RHB said in a note cited by Reuters.
Investors are still expected to push for a definitive resolution, clearer insights into the company’s strategy for maximizing shareholder returns, and stronger safeguards to prevent future corporate governance and board-related conflicts, they noted.
