SINGAPORE – Corporate governance concerns surfaced at the annual general meeting (AGM) of City Developments Limited (CDL) on April 29, as shareholders questioned the role of its directors and the progress of a strategic review.
This followed a high-profile dispute between executive chairman Kwek Leng Beng and group chief executive Sherman Kwek in 2025.
The elder Mr Kwek had accused his son of staging a coup to consolidate control of the board, but dropped the lawsuit soon after.
The media was not permitted to attend the AGM, but National University of Singapore professor Mak Yuen Teen, who attended the meeting, told The Straits Times that shareholders seemed to be “pretty happy” thanks to the company’s performance.
CDL’s 2025 earnings had soared 213 per cent to $629.7 million, up from $201.3 million in 2024.
But Prof Mak told ST he had some concerns. During the AGM, he asked about whether there was a conflict of interest regarding Mrs Wong Ai Ai, who is an independent non-executive director and chair of the Nominating and Remuneration Committee at CDL.
She also sits on the board of SWI Capital Holding, a global investment company involved in sectors like real estate and digital infrastructure. The company also has interest in markets like Britain, where CDL also has properties under its hotel unit.
SWI Capital, which listed in Amsterdam in February, also holds a majority stake in Stoneweg European REIT, which owns commercial properties across Europe.
Meanwhile, CDL has a stake in IREIT Global, which owns similar assets in Europe. The two REITs are listed on the Singapore Exchange and seen as competitors.
According to Prof Mak, the board replied that it is not uncommon for directors to serve on multiple boards where conflicts may arise.
Questions were also raised about CDL’s strategic review, which the company said it began earlier in 2026. The review aims to boost shareholder value by selling existing non-core assets and reinvesting the capital to reshape CDL’s property portfolio.
Shareholders asked who would be appointed to carry out the review, Prof Mak said, noting that the board said it has selected Teneo, a global strategic advisory and communications firm, to lead the process.
Mr Sherman Kwek also replied that the review will be discussed at a board strategy meeting in May, with details expected to be unveiled by end-June, according to a report by The Business Times.
Mr Sherman Kwek called the review “timely”, after CDL faced difficulties in 2025 including its highly-publicised internal dispute, BT reported.
CDL had divested about $2 billion worth of assets in 2025, including South Beach and Fortune Centre in Singapore. The South Beach sale was one of its largest to date, based on a valuation of about $2.75 billion.
Other divestments included Bespoke Hotel Shinsaibashi in Japan and Millennium Hotel St Louis in the United States.
CDL also made $1.7 billion worth of investments, including its purchase of Holiday Inn London at Kensington High Street.
In responses to questions submitted by shareholders on April 24 before the AGM, CDL had said the Holiday Day Inn deal strengthens its presence in central London, with the hotel achieving occupancy rates of over 95 per cent.
Together with the adjoining Copthorne Tara Hotel, CDL now controls two large freehold sites in the area, offering long-term redevelopment potential.
The group said it will adopt a multi-year approach to divestments, with a pipeline of assets identified globally for potential sale, including its UK land bank.
Mr Sherman Kwek said CDL’s current strategy was launched in 2018 and the group needs external help to see if the strategy is still appropriate and relevant, and if it is communicated properly to shareholders, BT added.
All resolutions tabled at the AGM were passed with a comfortable majority. These resolutions included the re-election of independent directors and its share purchase mandate, among others.
CDL also held its extraordinary general meeting on the same day, to vote on its new long-term share incentive plan.
Under the plan, selected management staff may be awarded CDL shares. It aims to tie the company’s long-term value creation to senior management remuneration. This resolution was passed with over 77 per cent approval.
Shares of CDL closed April 30 at $8.16, down around 1 per cent.
