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The recent developments at City Developments Limited (CDL) have brought to light some interesting questions about the company’s leadership. Ben Paul, senior correspondent, The Business Times, unpacks what it all means to investors in the latest episode of his podcast – Mark to Market.
Recent drama
In April 2025, as the corporate world enters the thick of AGM season, CDL’s upcoming AGM on April 23, is anticipated to be particularly eventful due to recent internal conflicts within its board.
The focal point of the drama is a power struggle between CDL’s executive chairman, Kwek Leng Beng, and his son, Sherman Kwek, the group’s CEO. The struggle came to light dramatically on February 26, 2025, when Kwek Leng Beng accused his son of orchestrating a boardroom coup, – alleging that new independent directors were appointed without proper procedures.
Conversely, Sherman Kwek highlighted the interference of Catherine Wu, a Kwek Leng Beng advisor, whose advisory role was terminated due to her alleged overreach.
Corporate governance as impetus
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The boardroom tussle points to larger issues of corporate governance within CDL, a family-controlled company. Both father and son claim their actions are in the interest of good governance, emphasising transparency and accountability.
Yet, the public focus has largely been on their personal conflict, overshadowing the bigger governance questions.
Shareholder value
The situation reached a temporary resolution on March 12, 2025, when Kwek Leng Beng decided to drop legal action related to the contested appointments. Despite this public display of reconciliation, skepticism remains about the board’s unity and its implications for CDL’s corporate governance.
Paul explores key concerns for minority investors including the robustness of CDL’s governance practices and whether the company can deliver shareholder value amidst internal disruptions.
Singapore’s Code of Corporate Governance
Paul provides historical context on corporate governance, noting how the concept evolved, particularly emphasising the Cadbury report of 1992 and Singapore’s Code of Corporate Governance introduced in 2003.
Paul underscores that regulatory bodies in Singapore are unlikely to intervene directly, as the authority to appoint directors rests with the board.
Unlocking value
He acknowledges that family control, like that seen at CDL, isn’t inherently negative if it delivers returns. However, given the recent tumultuous events, Paul suggests investors scrutinise the company’s decisions more closely at the upcoming AGM.
Ultimately, the company’s leadership must send a clear message at its April AGM about its commitment to good governance and financial performance. Paul suggests the upcoming AGM will be an opportunity for CDL to address these issues and strengthen investor confidence.
Listen now to this deep dive analysis ahead of CDL’s AGM.
Mark to Market is a podcast of BT Correspondents. Look out for the next episode featuring wealth editor, Genevieve Cua. And if you have any thoughts or questions, feel free to reach out to us at btpodcasts@sph.com.sg.
Written and hosted by: Ben Paul (benpaul@sph.com.sg)
Edited by: Howie Lim & Claressa Monteiro
Produced by: Ben Paul, Howie Lim & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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MDDI (P) 046/10/2024. Published by SPH Media Limited, Co. Regn. No. 202120748H. Copyright © 2025 SPH Media Limited. All rights reserved.
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