This article examines how the episode impacted CDL’s share price as well as how the market and analysts responded, and distills practical lessons for directors.
Sequence of events and market impact
The recent boardroom tussle at City Developments (CDL) between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek, has provided a rare public glimpse into the governance challenges faced by family-controlled companies.
Though the dispute has been resolved with both parties agreeing to continue in their respective roles, it offers valuable lessons for boards and directors, particularly those serving in family-controlled businesses.
