Property Billionaire Kwek Leng Beng Drops Case Against Son, Keeps City Developments Roles

Forbes - Mar 12th, 2025

Billionaire Kwek Leng Beng has withdrawn a court case against his son, Sherman Kwek, amid a boardroom tussle for control of City Developments Ltd. (CDL), a leading Singapore property giant. The feud became public when the elder Kwek accused his son of orchestrating a 'board-level coup' by appointing two new members without proper vetting. The legal proceedings, which had caused CDL shares to plummet to a 16-year low, were settled, allowing both Kwek Leng Beng to remain as executive chairman and Sherman as group CEO, with all current board members retained. The decision to end the legal battle aims to refocus on strengthening the company's business and corporate governance.

The conflict highlighted tensions within one of Singapore's wealthiest families, known for their $11.5 billion net worth. It also drew attention due to the resignation of Catherine Wu, an adviser allegedly involved in the dispute. Sherman Kwek had raised concerns about Wu's influence, claiming it posed a corporate governance issue related to CDL's Millennium & Copthorne Hotels. The resolution of this family and corporate conflict is significant given CDL's stature and history, having been transformed by the elder Kwek and his family into a major property developer since 1969.

City Developments Ltd. Kwek Leng Beng Sherman Kwek Boardroom Dispute Corporate Governance Catherine Wu Millennium & Copthorne Hotels Singapore Property Market

Story submitted by Fairstory

RATING

7.2

Fair Story

Consider it well-founded

The article provides a comprehensive overview of the boardroom dispute between Kwek Leng Beng and his son Sherman Kwek at City Developments Ltd. It accurately reports the withdrawal of the lawsuit and the retention of positions by both individuals, supported by credible sources. The narrative is clear and timely, addressing a topic of public interest with potential implications for corporate governance discussions. However, the article could improve its balance by incorporating more perspectives and transparency by detailing its sources. While it engages readers interested in business news, it could enhance engagement with interactive elements or expert analyses. Overall, the article effectively informs readers about a significant corporate event while highlighting areas for further exploration in corporate governance and family business dynamics.

Accuracy

The story accurately reports the withdrawal of the lawsuit by Kwek Leng Beng against his son, Sherman Kwek, which is supported by multiple sources. The details about the positions retained by both individuals are also correct as per the cited sources. However, the article could benefit from more precise details regarding the specific allegations in the lawsuit and how they were resolved. The claim about the stock price drop and its impact on CDL is consistent with available data, though a more detailed financial analysis would enhance accuracy. The mention of Catherine Wu's role and the family dynamics is accurate but lacks in-depth verification, which could be explored further.

Balance

The article presents a balanced view by highlighting both the allegations made by Kwek Leng Beng and Sherman's perspective on the corporate governance issues. However, it leans slightly towards the elder Kwek's narrative, as more details are provided on his actions and statements. The story could improve balance by including more insights from Sherman Kwek or independent board members. The coverage of the impact on CDL's stock price and market position provides a broader perspective on the issue.

Clarity

The article is well-structured and uses clear language, making it easy to understand. The logical flow from the lawsuit's withdrawal to its impact on CDL is coherent. However, the narrative could benefit from clearer explanations of complex corporate governance issues for readers unfamiliar with such topics. The tone remains neutral, contributing to the overall clarity of the piece.

Source quality

The sources referenced in the article appear to be credible, including statements from CDL and public records of the lawsuit. However, the article does not specify the sources directly within the text, which could enhance its reliability. The lack of direct quotes from independent experts or analysts is a missed opportunity to strengthen the source quality. The article could benefit from a wider range of sources to provide a more comprehensive view of the situation.

Transparency

The article offers a clear narrative but lacks transparency in terms of the specific sources of its information. While it mentions statements from CDL, it does not provide direct quotations or indicate where readers can find these statements. The article could improve transparency by disclosing more about the methodology used to gather information and any potential conflicts of interest that might affect reporting impartiality.