Glass Lewis issued a controversy alert on Friday for City Developments (SGX:C09) shareholders ahead of the company's annual general meeting on April 23.
The alert relates to a conflict between Executive Chairman Kwek Leng Beng and his son, CEO Sherman Kwek, regarding the process for nominating directors.
The CEO allegedly tried to modify the board's structure without adhering to established nominating committee procedures.
This led to the appointment of two independent directors outside the standard process, flagging governance alarms.
The father began a legal action against his son and other directors, saying the attempts were a boardroom coup.
Chairman Kwek also blamed governance lapses on long-serving adviser Catherine Wu, who subsequently stepped down.
The chairman withdrew the lawsuit in March, saying the matter was settled and all board members would retain their positions.
Given that shareholders will vote on the election of directors in the upcoming meeting, Glass Lewis highlighted departures from regular appointment procedures due to the issue.
The alert's rationale relates to relevant media coverage and precedent-setting or unique issue and falls under board responsiveness and other governance issue.
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