Billionaire Kwek Leng Beng has ended the lawsuit against his son Sherman Kwek and other City Developments Limited (CDL) directors. This concludes a family dispute that gained public attention for over two weeks.
In a March 12 statement, the CDL executive chairman confirmed he would keep his position while Sherman remains as group CEO. All current board members, including recently appointed independent directors Jennifer Duong Young and Wong Su-Yen, will continue on the CDL board.
“I have decided that the legal action that was launched in regard to the board resolutions taken since 7 Feb 2025 will be discontinued,” the elder Kwek said. CDL confirmed in a regulatory filing that “court proceedings have been settled and will be discontinued.”
The family conflict became public on February 25 when Kwek Leng Beng moved to dismiss his son as group CEO and filed a lawsuit claiming an attempted “coup” at the board level. Court documents showed the senior Kwek accused Sherman and six CDL board members of trying to take control of the company.
He pointed to the appointment of two new independent directors without full board approval and bypassing the nomination committee. The elder Kwek also noted financial losses under his son’s leadership, including “poor investment decisions” in the UK property market and a S$1.9 billion loss from CDL’s investment in Chinese developer Sincere Property in 2020.
Sherman, CEO since 2018, denied trying to remove his father, calling the legal action “extreme” and unauthorized by most of the board. He identified his father’s former personal assistant, Dr. Catherine Wu, as the source of the dispute. Sherman claimed the former Taiwanese musician, now a Singaporean, had been “interfering in matters going well beyond her scope” and “wields and exercises enormous influence.”
On March 4, Kwek Leng Beng announced Dr. Wu’s resignation as “an unpaid independent adviser” to the board of directors at CDL’s hotel arm, Millennium & Copthorne Hotels.
The public dispute impacted investor confidence. CDL shares closed at S$4.94 on March 12, down from S$5.12 before trading was halted on February 26 when the conflict became public. Trading resumed on March 3.
With boardroom tensions resolved, the elder Kwek stated that all board members have agreed to “put aside their differences for the greater good of CDL and its stakeholders.” “We will all continue to focus on strengthening CDL’s business, in accordance with good corporate governance, now and in the future,” he said.
The company plans to complete landmark developments across Singapore and globally, expand various brands under Millennium & Copthorne, continue its capital recycling initiative, and maximize shareholder value.
Both parties participated in two closed-door hearings at the Singapore High Court before deciding to end the lawsuit. Market analysts have mixed views on the company’s outlook. Some expect a renewed focus on driving shareholder returns and profitability, while others question whether the current board can work effectively after such a public dispute.
One analyst noted, “It remains to be seen if the board will be able to function effectively. In my view, this will be resolved by the votes of shareholders at the next annual general meeting.”
The Securities Investors Association (Singapore) had previously asked CDL about Dr. Wu’s roles at the group’s subsidiary and sought clarity on the management structure and decision-making process. The company’s annual general meeting is expected to be held on April 23, 2025.
