‘This is our responsibility’: CDL to give proper account to shareholders after putting boardroom dispute behind

SINGAPORE: City Developments Limited (CDL) is moving forward after settling its boardroom dispute, with group CEO Sherman Kwek stating that the company will now provide shareholders with a proper account.

Speaking to Lianhe Zaobao on March 16, he said, “This is our responsibility.”

According to The Edge Singapore, the younger Mr Kwek was attending the Singapore Chinese Chamber of Commerce and Industry’s council installation ceremony. He has held several positions in the business chamber and is now a council member.

The legal dispute between Sherman and his father, CDL executive chairman Kwek Leng Beng, caused a split in the company’s board.

The younger Mr Kwek pointed to his father’s adviser, Dr Catherine Wu, as the source of the conflict, adding that there had been no attempt to oust the chairman. In response, the older Mr Kwek announced Dr Wu’s “irrevocable resignation”.

The dispute led to a 7 per cent drop in the company’s shares after it lifted its trading halt amid the boardroom conflict. It also prompted the Securities Investors Association (Singapore) (SIAS) to seek clarification from CDL on several issues, including Dr Wu’s role as a director of Millennium & Copthorne Hotels (M&C) and how the company planned to reassure shareholders that the board remained effective and united in its business strategy.

However, before the case could be heard in court, the older Mr Kwek announced on March 12 that he would drop his lawsuit against his son and six other board members, stating his son “will continue as group chief executive officer”.

When the younger Mr Kwek was asked by Zaobao if his relationship with his father had improved, he said, “I am glad the lawsuit has been terminated.”

CDL released its full-year financial results on Feb 26 and will hold its annual general meeting on April 23. /TISG