After a court hearing on Wednesday ( Feb 26 ), City Developments Limited ( CDL ) executive chairman Kwek Leng Beng announced that his son Sherman and other directors acting with him had agreed not to take further action.
He claimed in a speech on Wednesday evening that the” major errors” of business management at CDL have now been resolved following the court hearing.
Mr. Kwek Leng Beng had previously disclosed that he would be bringing Sherman Kwek, the son of the group, to court over alleged governance breaches and an attempted board-level power grab earlier that day.
The committee members Mr. Philip Lee and Ms. Wong Ai Ai accused the older Kwek of evading CDL’s nomination committee and pushed through panel changes without right scrutiny.
The conflict centers on occurrences that started on January 28 when an message was sent to the table selecting two new independent directors.
The two new managers, who were unintentionally and hurriedly appointed on February 7, 2025, have pledged to hold off on any board positions until further notice of the jury, according to Mr. Kwek Leng Beng’s late on Wednesday statement.
” Sherman Kwek, Philip Lee, Wong Ai Ai, and the remaining managers acting in concert with them have agreed not to get any further action in relation to their attempted adjustments to the table commissions and management of some CDL’s companies, until further notice of judge.”
The sporadically constituted voting and compensation committee has also been told to refrain from proceeding with any further action.
According to Mr. Kwek, this means that the committee committees and the control of the relevant subsidiaries are” now protected from any further attempts to destablise, disassemble, and reinstate them,” adding that the table and the control of these subsidiaries will now be ready to “function normally and without unnecessary interference as they were prior to the attempted coup.”
I must emphasize that strong corporate governance is the foundation of a successful and long-term business. It ensures transparency, accountability, and responsible decision-making, which are critical to maintaining investor confidence and protecting the long-term interests of our shareholders, “he said.
This outcome underscores the importance of upholding the highest standards of governance in all corporate matters. In order to protect our shareholders and provide long-term value for them, we will continue to ensure the stability of CDL and the group.
Additionally, Mr. Kwek expressed his gratitude to the shareholders and stakeholders for their continued support and trust, and that updates will be provided as needed.