Kwek Leng Beng, chairman of City Developments Ltd., leaves following the company’s annual general … More
A monthslong rift between board members of Singapore-based property firm City Developments Ltd. (CDL) , which was believed to have been settled, cast a shadow over the company’s annual shareholders’ meeting held on Wednesday.
Last month, billionaire Kwek Leng Beng, 84, the company’s executive chairman, said board directors have agreed to move on and set aside their differences after he withdrew a court case he filed against his son, Sherman, 49, group CEO. But the shareholders meeting yesterday showed the board remains divided with veteran civil servant Philip Yeo, a CDL board member since 2009, voicing his disapproval over the hasty appointment of Jennifer Duong Young and Wong Su-Yen to the board in February.
“I am very disappointed over the way the two new directors were appointed,” Yeo said, adding that he objected to the re-election of three other directors who had facilitated their rushed appointment.
Despite Yeo’s objection, shareholders approved the election of all five independent directors including Young and Wong. They will join the Kweks in the 11-member City Developments board.
The dispute between the father and son became public in late February after Leng Beng sued Sherman for control of the Singapore-listed property developer. In the case filed with the Singapore High Court, the elder Kwek accused Sherman of instigating a boardroom coup by appointing two new board members without proper vetting by the nomination committee.
“There must be consensus,” Yeo said of the board appointments. “It should not be by a majority of directors pushing and disregarding the chairman.”
While the lawsuit has been wihtdrawn, the feud had cast the limelight on one of Singapore’s wealthiest families with an estimated net worth of $11.5 billion. It was settled after Catherine Wu, an adviser at the center of the boardroom tussle, resigned.
Apart from electing board members, shareholders also gave City Developments a mandate to buy back up to 10% of its shares, a move designed to support the share price, which has tumbled about 29% in the past 12 months.
Sherman Kwek acknowledged that the company is going through one of its most challenging periods and that it must prioritize asset divestments to raise cash and pare down debts. City Developments will re-evaluate previously shelved plans to list its U.K. commercial assets, he added. CDL reported a 37% drop in net profit to S$201 million ($153 million) in 2024, partly due to rising interest expenses.