The knights and pawns in CDL joust

ON WEDNESDAY (Feb 26), a battle for board control emerged within property giant City Developments Ltd (CDL) , with father and son in the family-controlled company lined up against each other.

Executive chairman Kwek Leng Beng issued a lengthy statement citing an “attempted coup” by a faction led by his son and group chief executive Sherman Kwek, along with board directors Philip Lee Jee Cheng, Wong Ai Ai and others, saying they sought to consolidate control of the board and the group. “In response, we have filed court papers yesterday to set things right,” said the elder Kwek. 

He sought the dismissal of his son Sherman, a move which was subsequently blocked by the board. The chairman had named his nephew Kwek Eik Sheng to serve as interim CEO “if and when Sherman is removed as CEO”, while the group hunts for a professional CEO to lead the company. 

This is not the first time a disagreement has torn a rift in the company’s management. In October 2020, non-executive and non-independent director Kwek Leng Peck left CDL, citing his disagreements with the board and management on the group’s investment in Chinese property group Sincere and its management of its British hotel arm. Kwek Leng Peck – Kwek Leng Beng’s cousin – walked away from the board after more than three decades in the role.

The Business Times looks at the key players involved in the fresh battle.

Woman in the centre

Sherman Kwek said the CDL board rift was triggered because of moves to rein in Dr Catherine Wu, Kwek Leng Beng’s adviser.

“(She) has been interfering in matters going well beyond her scope, and wields and exercises enormous influence. These matters have troubled us as directors,” he said.

Kwek Leng Beng, Sherman Kwek, Kwek Eik Sheng, Wong Ai Ai and Philip Lee Jee Cheng

Kwek Leng Beng, 84, is the executive chairman of CDL. The son of the late Kwek Hong Png, patriarch of the Hong Leong Group, he acquired a stake in CDL in 1969 – then a loss-making property company. From 1972 to 1973, he took a majority stake in the company and gained management control over it.

He is also chairman and executive director of Hong Leong Finance. From 1992 to 1994, he began buying major hotels in London, New Zealand and New York, and eventually listed Millennium & Copthorne Hotels (M&C) on the London Stock Exchange in 1996. M&C was privatised in 2019 and is a subsidiary of CDL. 

Sherman Kwek, 49, became CDL’s group CEO in January 2018. He is Kwek Leng Beng’s son. 

The younger Kwek began his career in New York in venture capital and investment banking before joining the US division of M&C. 

In his statement on Wednesday, Kwek Leng Beng described how “it was not the first time Sherman’s decisions have put CDL in a precarious position”. He cited how the group’s investment in Sincere Property Group “led to a staggering S$1.9 billion loss for CDL” in 2020, which he described in his memoir Strictly Business as one of the biggest setbacks of his career. In 2021, CDL exited its investment in Sincere for a consideration of US$1.

Kwek Eik Sheng, the son of Kwek Leng Beng’s late brother Kwek Leng Joo, was appointed chief operating officer in 2022. He joined CDL in 2009 and took on the roles of head of corporate development, chief strategy officer, as well as head of asset management.

He is also an executive director of CDL’s subsidiary M&C, as well as a non-executive, non-independent director of CDL Hospitality Trusts.

The older Kwek said in his statement that Kwek Eik Sheng will “serve as interim CEO to ensure continuity and stability”.

Wong Ai Ai retired in 2023 after 30 years in Baker McKenzie. She is also a Justice of the Peace. She was first appointed to CDL’s board in 2022. 

Philip Lee Jee Cheng, first appointed in 2021, is also a non-executive independent director at ComfortDelGro. His background is mainly in accounting and finance, with more than 35 years of experience. 

He was an audit partner at KPMG Singapore, where he served on the Singapore leadership team and the Asia-Pacific executive team. 

Other CDL board members in addition to Leng Beng, Sherman, Wong and Lee

Wong Su Yen: On Feb 7, CDL announced the appointment of Wong and Jennifer Duong Young as two new independent non-executive directors. She is currently an independent director at CSE Global, First Resources, Yoma Strategic and the Infocomm Media Development Authority. Previously she served as non-executive chairman of Nera Telecommunications and as a director of Mediacorp and NTUC First Campus.

Jennifer Duong Young: She spent 21 years at Credit Suisse, including serving as its managing director and Asia-Pacific treasurer.

Philip Yeo: Yeo was first appointed to the board in 2009, and was last re-elected in 2023. A career civil servant, he was the chairman of the Economic Development Board from 1986 to 2006. He was instrumental in the conceptualisation of petrochemicals hub Jurong Island.

He also spearheaded the development of Singapore’s biomedical sciences sector and was chairman of the Agency for Science, Technology and Research (A*Star) from 2001 to 2007.

He is currently the chairman of Economic Development Innovations Singapore, as well as of Accuron Technologies. Yeo is also an independent director of listed Sunway and QAF.

Colin Ong: Ong was first appointed to the board in 2020, and was last re-elected in 2022. He is executive senior director (financial services) representing Great Eastern Financial Advisers – a position he has held since 2011.

Chong Yoon Chou: Chong has been in finance for nearly three decades. He started his career in 1994 as an analyst and fund manager covering Asian equities. He was first appointed to the CDL board in 2020.

Carol Fong: Chan also has extensive experience in the finance industry, with more than 30 years of experience in investment banking and financial markets. She is currently group CEO of CGS International Securities, Singapore. She was first appointed as director on the CDL board in 2020.

Daniel Marie Ghislain Desbaillets: Desbaillets has spent 45 years in the hospitality industry, with senior positions in international hotel chains such as InterContinental Hotel Group, Hilton, Shangri-La, M&C, Fullerton Hotels and Resorts, and TCC Hotels Thailand.

CDL’s Management Exco

Sherman Kwek

Kwek Eik Sheng

Chia Ngiang Hong: Chia is CDL’s group general manager and has been with the company for more than 40 years. He is known to have worked closely with both father and son. He served as president of the Real Estate Developers’ Association of Singapore from 2019 to 2020 and 2021 to 2022.  

Yiong Yim Ming: Yiong has been with the group since 2007 and was appointed CDL’s chief financial officer in April 2016. Before joining CDL, she was at KPMG Singapore for 10 years, and EY Singapore for two years.