CEO son Sherman Kwek appoints lawyers in legal battle against father, Singapore’s 4th richest man Kwek Leng Beng

The family dispute at City Developments Limited (CDL)– Singapore’s biggest property developer – escalated Thursday as court documents showed that CEO Sherman and six board directors had appointed law firm Lee & Lee to defend them in a business lawsuit that has caught global attention.

Sherman’s father and chairman of the company, Leng Beng, has retained LVM Law Chambers to represent him and the remaining directors of the board, according to The Straits Times.

The confrontation between the father and son in one of the richest Singaporean families reached a tipping point Tuesday as Leng Beng filed a lawsuit to the High Court against his son to prevent an alleged takeover.

"This is necessary to address the attempted coup and restore corporate integrity," the 84-year-old said.

His statement asserted that Sherman and his supporters had twice circumvented the established nomination committee process to appoint two new directors.

Leng Beng said that these actions breached established corporate governance principles and regulations set forth by the Singapore Exchange.

He and his supporters had achieved an initial success as the two new directors, Jennifer Duong Young and Wong Su-Yen, have consented to refrain from exercising their directorial powers pending further directives from the court.

Leng Beng also said that Sherman and his collaborators had committed to not making additional changes to the board structure until a court ruling is made.

Sherman, on the other hand, had earlier conveyed his disappointment regarding what he characterized as his father’s "extreme actions" in response to a disagreement concerning the size and composition of the board.

Both legal teams are scheduled to appear for another private High Court hearing on March 4th.

Leng Beng and his family share a combined net worth of US$11.5 billion, making him the fourth richest billionaire in Singapore, according to a ranking list by Forbes last September.

City Developments has a market capitalization of SGD4.6 billion (US$3.4 billion) and properties in nearly 30 countries.