City Developments Limited (CDL) has seen its online sentiments dip to 36.7% negative and 3.6% positive amidst a massive boardroom battle between its leaders. This is down 3.3% negative and 65.4% positive before the ongoing tussle began, according to media intelligence firm CARMA.

The conflict at CDL arose when Kwek Leng Beng accused his son of attempting to appoint new independent directors without proper board approval, which he described as an "attempted coup."

Tensions peaked when Kwek Leng Beng sought his son's removal, citing a series of poor business decisions that he believed had jeopardized the company, including a substantial loss from an investment in a Chinese developer.

As the feud unfolded, CDL's governance came under scrutiny, leading to a trading halt on the stock market due to the internal discord. Kwek Leng Beng expressed concerns about the integrity of the board and the need to restore strong governance practices. He also emphasized that bypassing corporate governance protocols was a serious violation that could harm the company’s reputation and stability.

Meanwhile, Sherman Kwek defended his actions, claiming they were aimed at improving governance and were not intended to undermine his father’s position.

The situation was further complicated when Sherman Kwek pointed to Dr. Catherine Wu, a former personal assistant to Kwek Leng Beng, as a source of influence and conflict within the board.

Currently Sherman Kwek has roped in senior counsel Davinder Singh as part of his team of lawyers as he faces off his father. 

According to CARMA, social media users are currently speculating about the reasons behind the conflict, with some suggesting influence from Wu. Some netizens compared Sherman Kwek to Kendall Roy from the TV show ‘Succession,’ due to perceived incompetence.

Additionally, online opinions are divided on Sherman Kwek's business acumen, with some users questioning his capabilities compared to his father, said CARMA. 

According to Oliver Ellerton, director at Ellerton & Co Public Relations, disputes are an inevitable part of doing business. "While the CDL situation has drawn comparisons to Succession, the reality is that every entrepreneur, startup founder, business owner, or multinational CEO will, at some point, face major conflicts. But disputes don’t define a company - how leadership responds to them does," he said. 

 

He added that as a large, publicly listed company, CDL must prioritise transparency and consistent disclosures as nothing kills trust quicker than silence. "Maintaining control of the narrative is equally crucial and decisive actions, such as the trading suspension, can be viewed as part of this strategy," he said. 

True enough, CDL has been rather vague on providing updates. In a statement on 3 March, it said that while various allegations have been made about this matter, CDL "will not comment on the validity of these allegations, as many of these allegations are the subject of the court proceedings which are ongoing."

"CDL’s business operations remain fully functional and unaffected. It is business as usual. Mr Sherman Kwek remains the group chief executive officer until such time as there is a Board resolution to change company leadership," it added. 

"For close partners and shareholders, reassurance is key. They need to know that the issue is being taken seriously at the highest levels," said Ellerton. "Engaging stakeholders through closed-door dialogues, town halls, and direct communication channels can help demonstrate that concerns are being heard and addressed where necessary."

He added that beyond immediate stakeholders, the wider public and regulators will be watching closely and that restoring trust requires clear, honest, and proactive communication.

Already, CDL has lost its title as Singapore’s largest listed developer to UOL after trading resumed on March 3. The trading halt, which began on February 26, was lifted before the market opened, with CDL's shares last priced at $5.12.

When trading started again, CDL's stock dropped 6.5% to $4.79, hitting a 16-year low. It later recovered some losses, closing down 2.3% at $5, with a total of 14 million shares traded. This drop brought CDL’s market value down to $4.47 billion, below that of UOL.

"In the short term, CDL must focus on open and honest communication - no spin, no gaslighting. In the longer term, it’s about demonstrating business stability, showcasing future successes, and articulating a clear path forward - regardless of who ultimately comes out on top," said Ellerton.

Repairing Damage And Restoring Consumer Trust

Adding to his point,  Edwin Yeo, general manager at Strategic Public Relations Group Singapore noted that the ideal PR scenario for CDL was to resolve this dispute behind closed doors, but given how things have developed, it probably wasn't likely to do so. 

"Both sides would probably benefit from keeping this about a governance issue and letting the courts decide the dispute, rather than fight a battle in the public. While it might not affect their business, it does have and already had an impact on their share price, which isn't good for shareholders," he said. 

He added that moving forward, regaining investor confidence is something that needs to be the focus of every piece of communication both sides make in the future.

True enough, Charu Srivastava, co-founder of TriOn & Co. suggested that while the current statements CDL has put out so far are good and address key issues and areas of concern, there is a bigger onus on CDL to communicate with shareholders, especially with the halt on share trading.

"I believe while the statement works for now, it is a case of playing catch-up with the rapidly unfolding saga - CDL needs to ensure that they are communicating as quickly and accurately as the media is reporting," she said. 

She added that first and foremost, there needs to be a clear resolution of the matter at hand with the two warring camps coming together united by a single direction for the company and its governance.

"This resolution needs to be communicated with clarity and conviction to all shareholders and other stakeholders. Additionally, senior and junior Mr Kwek need to appear together to reassure the public that the matter has been laid to rest and that any animosity has been mitigated," she said. "This is most crucial to convince consumers that such incidents will not reappear and that the pair remain committed to the company beyond their personal issues."