CDL global reputation takes a hit as father-son battle makes global headlines

City Developments Limited (CDL), Singapore's largest listed property developer, is currently embroiled in a significant family dispute. The conflict centers on a leadership struggle between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek. 

According to media intelligence firm CARMA, sentiments of conversations about CDL have dipped from 65.4% positive and 3.3% negative to 3.4% positive and 40.6% negative. Of the conversations, social media users were speculating about the reasons behind the conflict and had divided opinions regarding Sherman's business acumen and capabilities. Some netizens have compared Sherman to Kendall Roy from the TV show Succession, due to perceived incompetence, said CARMA. 

It's word cloud before the dispute included words such as 'developments', 'growth', 'driven' and 'investment'.

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However, it has since shifted to 'control', 'battle', 'fued' and 'family'. 

The dispute has received a total of 35,290 social engagement from 26 to 28 February, following the news of a boardroom coup in the property developing company.

CDL was predominantly mentioned on Reddit (32.7%), with netizens expressing apprehension towards mixing family ties and businesses together, according to media intelligence firm Truescope. Some netizens enquired about Sherman's ability to run the company too. 

Discourse on HardwareZone Forum honed in on the alleged involvement of chairman Leng Beng's adviser Dr Catherine Wu in the coup after Sherman remarked interference and the wielding of influence in the company. Netizens enquired about Wu's part and involvement in the ongoing struggle. Meanwhile, conversations on SG Talk enquired about the court hearing and its implication, both on the company and the hierarchy of power, said Truescope. 

Shares of CDL have also fallen 6.5%, reported The Straits Times. This comes as trading in the company's shares resumed on 3 March. In a statement seen by MARKETING-INTERACTIVE, CDL said that it will not comment on the validity of allegations made about the company and the disagreement within the board. "CDL's business operations remain fully functional and unaffected. It is business as usual," said CDL. 

Commenting on the shares dropping, Jose Raymond, managing director of SW Strategies said, the tumble was an indication of what shareholders think of the potential impact of the boardroom tussle.

“The battle between father and son is almost like a real-life soap opera playing out in front of our eyes. Unfortunately for CDL, one of Singapore's most recognised brand names, the news of the fall-out has also been reported across the world,” said Raymond, referencing the coverage across multiple global news outlets such as BBC, Japan Times and even in news outlets in Vietnam, among many others.

“This is indicative that there will be a need for the company to work on a global reputation management strategy when the courtroom battles end. The best way to deal with the current situation would be to de-escalate, and not escalate,” he added.

What's happening with CDL? 

On 26 February 2025, CDL executive chairman Kwek Leng Beng accused group CEO Sherman and two other directors of attempting a boardroom coup by pushing through the appointment of two new independent directors - Jennifer Duong Young and Wong Su-Yen - without full board approval, reported Financial Times. Leng Beng reportedly claimed that the move was part of an effort to restructure the board and bypass the company's nomination committee. He then filed a lawsuit to oust his son as CEO, citing governance lapses and poor business decisions under Sherman's leadership. 

Speaking to The Straits Times, Sherman expressed disappointment over the "extreme actions" taken by his father, stating that the focus of the CEO and the company's directors has always been to implement steps to improve governance. He added that the legal action taken by Leng Beng was taken despite it not being authorised by the majority of the board and reiterated that "this has never been about ousting our esteemed chairman". 

Meanwhile, in a statement to CNA, Sherman said that Wu, an advisor to the board of Millennium & Copthorne Hotels (M&C), a subsidiary of CDL, has been interfering in matters going well beyond her scope. He reportedly said that Wu wields and exercises enormous influence given her long relationship with Leng Beng, and that efforts from directors that were made to manage the situation sensitively were not successful. 

As such, the directors have proposed a resolution to terminate the advisory agreement between Wu and the board of M&C and another to affirm that Wu has no power and authority, among other things, to influence or advice the directors, management and staff of the CDL and M&C groups, Sherman reportedly said. 

CDL took the decision to temporarily suspend trading shares on 26 February. This is in view of the disagreement within the board in relation to the composition and constitution of the board and the board committees. "Despite this temporary suspension, our business remains fully functional and unaffected. Sherman Kwek remains the group CEO until such time there is a board resolution to change company leadership," said CDL in a statement. 

"As the matter is currently under review, the company will make further announcements should there be any material developments in this matter, in line with SGX listing rules," added the statement. 

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