Following Walter Kwok's leave of absence in February, the family feud in the Hong Kong property developer gradually came out in the open.

On February 18, Sun Hung Kai Properties (SHKP) made a surprising announcement that its chairman and chief executive Walter Kwok would take a leave of absence.

Rumors spread in the business community that the move was related to his friendship with a woman, and also disagreement with his two younger brothers, Thomas Kwok and Raymond Kwok, over company operation.

Walter, who became chairman in 1990, was on leave for about three months. During the period, reports said that he was keen to resume his duty.

As he struggled to stay as the company chairman, the family feud was brought to the court. Kwok applied to the High Court for injunction order restraining the SHKP board from removing him as the company chairman on May 15.

The application file unveiled that Kwok's disagreement with his younger brothers started in May 2007.

Listed on the Hong Kong stock exchange in 1972, SHKP is one of the most renowned property developers in Hong Kong, and Walter Kwok became chairman in 1990.

SHKP's slogan of "building homes with heart" permeates through the people in Hong Kong and a positive image has been built up in these years.

Walter's father Kwok Tak Seng, together with billionaire Lee Shau-kee and Fung Kung Hei co-founded the property developer in 1963. Lee Shau-kee, chairman of Henderson Land Development, told the media earlier that he was sad about the family feud and hoped that the dispute could be resolved amicably.

However, on May 21, Walter Kwok sued his brothers for libel, saying they had dubbed him a liar, a person of "low integrity", and made "unwise" investment decisions.

On Monday, Hong Kong's Court of Appeal upheld the High Court ruling on May 23 that canceled a temporary injunction blocking the meeting.

(HK Edition 05/28/2008 page2)