” Edge OF THE Glacier”
According to Professor Lawrence Loh from the National University of Singapore ( NUS), it is “rare” to request the removal of a CEO based on a governance lapse in the nomination and appointment of board directors, adding that the most recent controversy is “likely the tip of the iceberg.”
Similarly, Mr Lai said:” From my perspective, a governance lapse relating to a ( nominating committee ) process alone is unlikely to justify and warrant the removal of a CEO”.
In his speech, Mr. Kwek Leng Beng cited” a lengthy series of mistakes” by his son since taking over the bank’s top position in 2018, including the unfortunate investment in Chinese designer Sincere Property Group.
The funding, spearheaded by Mr. Sherman Kwek in 2019, was intended to expand CDL’s presence in China. But the onslaught of COVID-19 and regulatory upheaval in the Chinese real estate market ultimately resulted in a S$ 1.9 billion ( US$ 1.42 billion ) loss for CDL in FY2020.
Eventually, the company sold its interest in Sincere for US$ 1 in 2021, but not without causing a rift in the family-run business. It led to board defections, including the withdrawal of non-executive and non-independent producer Kwek Leng Peck, a niece of the top Kwek.
Vijay Natarajan, an scientist for RHB Singapore, described the investment in Highly Indebted Sincere as a “misstep” taken in an effort to rapidly increase CDL’s presence in China.  ,
While CDL has successfully recovered from it, he said,” We believe the issue nevertheless persists as an arch in the minds of owners who have been searching for a solid overseas expansion strategy.”
WHAT CAN THE COMPANY Would TO RESTORE CONFIDENCE?
Although this is not the first home debate to be publicly exposed within CDL, experts believe its effects may be even greater this time.
What could possibly be more significant than a dad firing his own child? asked NUS ‘ Prof Loh.
The top Kwek’s legal action appears to be intended to” strongly affirm that corporate governance is immutable and due diligence is required.”  ,
” We can get it because the company is moving to maintaining the organization in the interest of shareholders,” the company said. According to Prof. Loh, director of the Centre for Governance and Sustainability at the NUS Business School,” to set it more explicitly, between business and home…
The statement made by the elder Kwek that CDL is available to appointing a “professional CEO” suggests that the business may get leadership outside of family control to reassure shareholders, Prof Loh continued.  ,
Assoc Prof Law said the removal of a CEO is “generally a big step for any business, especially one with a family-run history”.
” From an outsider’s perspective, prominent people problems can create an impression of internal conflict, probably prompting concerns from partners about the company’s strategic way”, he added.
The company’s ability to resolve any inner disagreements mainly depends on how quickly and completely the organization resolves them, though.
If the company’s leadership is show” obvious steps to uphold governance principles and ensure clean operations”, the long-term effect on brand perception and investor confidence perhaps be reduced,” said the NTU professor.  ,