SINGAPORE: The scion of Singapores richest real estate clan denied his fathers claim that he was leading a boardroom coup, saying the primary reason for the family dispute lies with a key adviser to the billionaire patriarch.
There has been no attempt by us to oust the chairman, Sherman Kwek, chief executive officer of City Developments Ltd said in a statement late today, referring to his father Kwek Leng Beng.
The chairmans claim that there is an attempted coup by the majority directors to consolidate control of CDLs board is not only incorrect, it distracts from the nub of the issue.
Shermans response escalates the feud thats roiled Singapores wealthiest clan after his father filed a lawsuit claiming he and other directors were leading a boardroom coup and accused them of serious lapses in corporate governance.
In particular, the elder Kwek objected to the appointment of two directors who were added to the board this month without going through the typical nomination process, according to his statement this week.
The worsening tit-for-tat has plunged Singapores largest listed developer into crisis, sparking a rare succession battle in the city state.
Shares of the US$3.4 billion firm, already suffering from a major drop in profits, remain suspended, and have been downgraded by firms including JPMorgan Chase & Co.
In his latest salvo, Sherman accused the elder Kwek of being influenced by Catherine Wu, an adviser to the board of the firms hotel subsidiary whose conduct raises a very serious issue of corporate governance.
She has been interfering in matters going well beyond her scope, and she wields and exercises enormous influence, he said.
Due to her long relationship with the chairman, efforts that were made to manage the situation were done sensitively, but to no avail.
Representatives for Wu couldnt be reached for comment while those for the elder Kwek didnt immediately respond to a request for comment after business hours.
Sherman said that a majority of directors passed a resolution on Feb 21 to affirm that Wu has no power and authority to influence the boards, management and staff of CDL and its hotel unit, to restore proper corporate governance and accountability.