What governance lapses did Kwek Leng Beng allege his son committed?

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Kwek Leng Beng Did Not Specify Governance Lapses Alleged Against His Son

Kwek Leng Beng, the executive chairman of City Developments Limited (CDL), publicly accused his son, Sherman Kwek, of governance lapses and an attempted boardroom power grab. However, the specific details or nature of these alleged governance lapses were not elaborated upon in his public statements. The dispute became public when the elder Kwek announced legal action against his son, characterising the actions as a "coup" aimed at restoring corporate integrity.
Accusations of a "Coup"

The 84-year-old Kwek Leng Beng initiated legal proceedings against his son, Sherman Kwek, alleging that the latter had committed governance lapses and orchestrated an attempted boardroom power grab. The executive chairman described these actions as a "coup" in his initial public statements, indicating a severe breach of established corporate protocols. He stated his intention to restore corporate integrity within the company.
Sherman Kwek's Response and Counter-Allegations

Sherman Kwek, 49, responded to his father's claims by stating they did not present the complete context of the dispute. He refuted the "attempted coup" narrative, asserting that there was no effort by the majority of directors to oust his father. Instead, Sherman Kwek pointed to Dr Catherine Wu, an adviser to the board of subsidiary Millennium & Copthorne Hotels (M&C), as the source of conflict. He accused Dr Wu of overstepping her authority and exerting undue influence, suggesting that the resolutions to terminate her advisory agreement were necessary for proper corporate governance and accountability.
Boardroom Resolutions and Legal Challenge

The majority of CDL's board passed resolutions on February 21 to terminate Dr Wu's advisory agreement. Kwek Leng Beng, along with minority directors, subsequently filed court papers on February 25 to challenge these resolutions. Their request for an urgent court hearing to reverse the resolutions was, however, unsuccessful. Sherman Kwek described this move as an attempt to "ambush" the majority directors, noting that the court papers were served with very little time before the scheduled hearing.
Court Proceedings and Undertakings

Sherman Kwek stated that the minority directors did not succeed in persuading the court to rule on the merits of their application. He explained that because the majority directors had insufficient opportunity to present their case, they voluntarily offered undertakings to preserve the status quo until a full hearing. The court explicitly stated that it was not making any substantive orders on the minority directors' application. Furthermore, the court directed all directors, including Kwek Leng Beng and the minority directors, to refrain from actions that would prejudice the other party's position in relation to CDL's subsidiaries until the dispute is resolved.

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What governance lapses did Kwek Leng Beng allege his son committed?

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