Dispute over CDL directors’ appointment casts shadow over property group at AGM

SINGAPORE – The appointment of two independent directors earlier in 2025, which played a key role in a recent public spat between the father-and-son team in charge of City Developments Limited (CDL), continued to cast a shadow on the firm.

At the hotel and property group’s annual general meeting on April 23, Mr Philip Yeo, a CDL board member since 2009 and a respected veteran civil servant who has served on many boards, voiced his unhappiness over how Ms Jennifer Duong Young and Ms Wong Su-Yen were appointed.

“I am very unhappy... I am very disappointed over the way the two new directors were appointed,” said a clearly agitated Mr Yeo, who added that there was no reason for the hasty appointments at a time when the nominating committee chair, Mr Chong Yoon Chou, had to rush to Malaysia to tend to his sick father. 

“So, therefore, I am of the view that the two directors should not be appointed,” he said.

Billionaire property tycoon Kwek Leng Beng, 84, who is executive chairman of CDL, had in February accused his son Sherman Kwek, 49, the firm’s chief executive officer, and a group of directors of

an attempted coup to oust him

. 

Mr Sherman Kwek has denied any attempt to oust the chairman. Instead, he blamed

Dr Catherine Wu

– who has a long relationship with his father – for the dispute, as she “wields and exercises enormous influence”.

Mr Yeo’s outburst was witnessed by around 450 CDL shareholders who had packed two rooms at the M Hotel in Anson Road, as well as others who had tuned in to the hybrid AGM. This is the first time CDL had to prepare an “overflow room” in anticipation of a larger turnout.

Some shareholders said they were at the AGM in hopes of seeing a united CDL. It was the first public event the father and son attended together since the spat.

“I am here to see if Kwek Leng Beng and his son have really moved on and are on talking terms,” said one shareholder, who wanted to be known only as Ms Lim.

But she was disappointed as the two men hardly interacted even though they sat together.

The AGM had started on a solemn note, with the chairman – clad in a grey suit and pink tie – convening the AGM and Mr Sherman Kwek going through the financials before Mr Yeo spoke up.

Mr Yeo said in the companies he has been involved in, local and overseas, directors do not overthrow the chairman, prompting applause by shareholders in the ballroom.

“It must be consensus and not disregard for the chairman,” he said, emphasising the importance of unanimity among board members.

“Going forward, there must be good governance so that this cannot happen again, where the majority can bully the minority. I want to register my unhappiness,” Mr Yeo said, to another round of applause.

One shareholder, Mr Chew Sutat, who retired from the Singapore Exchange (SGX) in 2021, said that when it comes to board matters, the majority does rule.

Despite Mr Yeo’s comments, all five of CDL’s independent directors who were up for re-election – including Ms Duong Young and Ms Wong – were reappointed.

The company currently has 11 board members, including Mr Kwek Leng Beng and Mr Sherman Kwek.

Speaking to The Straits Times after the results were announced, Mr Yeo said he still has concerns. “Yes, there is still a fundamental problem.”

Mr Kwek Leng Beng told ST he was “very happy” with the outcome.

“Look at it from a long-term perspective. Rest assured, I am very confident. Now we can look at the bigger picture,” he said.

ST had reported that senior establishment figures in Singapore intervened and mediated a truce that put a halt to the acrimonious boardroom fight which had raised eyebrows within the region and in the UK, where CDL also has investments.

On March 12, Mr Kwek Leng Beng withdrew his lawsuit, which was intended to stop his son and majority directors of CDL from implementing a number of board resolutions and restrain the two new independent directors from exercising their powers. 

Shareholders, who have seen CDL’s share price sink to historic lows during the feud, clamoured to know the company’s growth plans, and expressed hope that the company buys back its shares to help boost confidence. 

One shareholder said: “It is time for the board to re-embark on its share buyback programme.”

“Judging from the interaction here, I have my doubts as to how the board can move forward, given the diversity of views,” said another shareholder. 

Mr Sherman Kwek said the key priority in 2025 will be to accelerate CDL’s capital recycling initiatives so that it can cut its interest expense burden which has ballooned to almost $600 million, and use the proceeds from divestment of non-core assets to deploy into new acquisitions.  

He also said CDL will re-explore the real estate investment trust listing of its UK commercial assets on the SGX when conditions are right. CDL shelved the listing plan in late 2022.

CDL’s share price closed at $4.90, up six cents, on April 23.