From boardroom to courtroom: Does comms have a say in the CDL family feud?

City Developments Limited (CDL) group chief executive Sherman Kwek (pictured right) has roped in senior counsel Davinder Singh to his team of lawyers to represent himself and six other board members against his father and CDL executive chairman Kwek Leng Beng. The representation follows a nearly week-long public rift between the father and son, impacting the real estate company's brand's sentiments. 

Meanwhile, the older Kwek (pictured left) and three other board members are represented by LVM Law Chambers. Since the emergence of the dispute, CDL has already lost its position as Singapore’s largest listed developer as stock fell as much as 7% on Monday, following the lifting of a trading halt, said an article on The Business Times.

While the drama shows no end in sight, an earlier article written by MARKETING-INTERACTIVE indicated that sentiments around CDL have also dipped from 65.4% positive and 3.3% negative to 3.4% positive and 40.6% negative. 

With both parties lawyering up and the boardroom tussle turning into a rather public courtroom battle, MARKETING-INTERACTIVE spoke to industry professionals on what the role of communications is when lawyers step into the picture.

Don't miss: CDL global reputation takes a hit as father-son battle makes global headlines

To begin with, PR professionals in such instances, cannot take a backseat but rather position themselves as a strategic partner to the legal team. PR professionals must remember that there are usually three sides to a story in a legal battle, said Jose Raymond, managing director of SW Strategies - the version provided by the complainant, the version provided by the respondent and what is the truth.

"In a high-profile legal imbroglio, it is a norm for the warring factions to engage PR practitioners to help steer the narrative," said Raymond. The craftmanship would determine how the brand or the personalities are judged in the court of public opinion.

Meanwhile, Edwin Yeo, general manager at Strategic Public Relations Group agrees that PR professionals aid in shaping the narrative in the court of public opinion, but they should not be working in silos. He added:

Ideally, PR professionals and lawyers should work in tandem, ensuring that both legal and reputational considerations are addressed.

In the case of CDL, both CEO and executive chairman should have a common interest in preserving stakeholder trust in CDL amidst the legal proceedings, he said. As such, the PR teams' role remains to safeguard the company's reputation, ensuring that when the case is resolved, CDL's credibility remains intact.

"While the CEO and executive chairman may naturally frame public statements to support their legal positions, they must also recognise that how the company is perceived post-dispute will have lasting implications," he added.

To Yeo's point, Oliver Ellerton, director at Ellerton & Co. Public Relations said that legal disputes are not new but how leadership responds will define CDL's legacy. "As the saying goes, trust is built in transparency and broken in silence," said Ellerton. This makes a communications strategy for stakeholders and partners a top priority when a company's legal case has gained media attention.

The communications strategy can come in the form of private briefings behind closed doors, face-to-face or virtual town halls and dedicated forums where concerns can be voiced and addressed. While action can be taken where necessary, demonstrating respect and attention will pay dividends in the long term, he said.

In addition, clear and structured communications plan is essential to shaping the narrative and maintaining control. In the longer term, PR will be especially crucial in rebuilding the company's reputation. "Regardless of who emerges on top, the challenge will be overcoming negative perceptions that have built up over the past weeks," said Ellerton. 

Balancing legal proceedings and public interest

During litigation, communications professionals will have to take advice from the legal team hired by the brand to ensure that only information which is approved for public consumption is released to the public, either through the media or owned platforms. In doing so, balancing transparency and discretion is vital to ensure that sensitive legal matters are managed responsibly, while safeguarding the client's interests and legal standing. 

At times, explained Raymond, the risk is elevated when the complainant releases information which may be detrimental to the respondent, which then calls for a response or a containment.

"This is why in a battle between warring parties, a de-escalation is always the best strategy," said Raymond. 

When addressing public interest, transparency, honesty and strategic communications are non-negotiables, said Ellerton. This is especially since public trust is fragile, and any attempt to manipulate the narrative will backfire, adding that: 

The golden rule of crisis PR is simple: no spin and no gaslighting.

At the same time, silence only fuels speculation and distrust. "Even when legal constraints limit what can be shared, it is essential to acknowledge the issue and public concern," said Ellerton. A simple statement such as "We respect the legal process and are committed to addressing this matter responsibly" allows the company to recognise the situation without overstepping legal boundaries. Dodging questions or appearing evasive will only damage credibility further.

In such a situation, anticipation is also key. "While no one has a crystal ball, communications professionals must engage in scenario planning, preparing holding statements in advance and ensuring they are pre-vetted by legal teams," added Ellerton. Legal issues can take months or even years to resolve, so communications teams need to be prepared for a long-term strategy that ensures the company’s successes and ongoing operations remain visible despite the dispute. 

At the same time, communicators must carefully navigate messaging to avoid appearing partisan while reinforcing confidence in the company, said Yeo, adding that:

Communications teams serve the organisation - not individual shareholders. 

"While uncertainty about leadership may arise, CDL’s core strengths—its commitment to quality developments and strong property management—should remain central to external communications. Rather than a blanket 'business as usual' message, public statements should acknowledge stakeholder concerns while demonstrating continuity and stability," stated Yeo.

Post-trial reputation management 

While the jury is out on how the case will play out, and which Kwek family member will come out on top, one thing that is for certain is that sooner or later the drama will end. When that happens, CDL must act swiftly to manage any reputational fallout.

"Ideally, these decisions should be made with input from communications professionals, ensuring that legal outcomes are translated into a clear, strategic corporate narrative," said Yeo. "Senior communications leaders can help management anticipate and mitigate reputational risks, shaping a message that reassures stakeholders and reinforces CDL’s long-term vision. By proactively addressing concerns and communicating a clear path forward, the company can emerge from the dispute with its reputation strengthened rather than diminished," Yeo added. 

Ellerton, on the other hand, is of the opinion that leadership has to own the narrative rather than shy away from it. He added that engaging with the media proactively is crucial. This includes scheduling interviews with key journalists to set the record straight, address misinformation, and provide reassurances about the future. Leadership should take the opportunity to explain what happened, what lessons were learned, and how things will be different moving forward.

"The media and general public will continue asking questions and avoiding them will only prolong the damage. Transparency, honesty and humility are essential in shaping the post-crisis narrative," said Ellerton. 

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