Kwoks' sibling rivalry bares opaque succession plans at family-run firms

'Though times change, caring for loved ones never changes...'

So said the Sun Hung Kai Properties commercial launched on primetime television in May of last year. The advertisement depicted a father's affection for his son in an unusual way - he asked his son to take his lead in acquiring a quality home from SHKP.

But in sharp contrast to the property developer's message of love and harmony, a saga of bitter sibling rivalry was beginning to unfold inside the company's boardroom. Over the next year, the contest burst into public view as brothers Walter Kwok Ping-sheung, Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen struggled for control of the HK$325 billion empire their late father, Kwok Tak-seng, built.

It was a highly public dispute, replete with charges of mismanagement, questions about the undue influence of a woman friend, charges that eldest brother Walter suffered from a psychological disorder, media leaks and court injunctions. It ended with Walter Kwok's ouster as chairman on May 27.

SHKP's boardroom battle is unrivalled in Hong Kong's recent corporate history in terms of drama, intrigue and acrimony.

The family feud cast a shadow on the company and raised concerns about the opaque succession plans at other family-controlled companies in Hong Kong - some of which are still run by their octogenarian founders.

CLSA said a 2006 report that nearly two dozen listed companies in Hong Kong need to address succession issues. In the report, managing director Amar Gill said CLSA identified 20 companies such as Li Ka-shing's Cheung Kong (Holdings) and Hutchison Whampoa whose leadership will pass to the next generation within five to 10 years.