KC Technologies – a subsidiary of household furniture and accessories distributor Kitchen Culture – is unwinding the transfer of US$480,010 ($652,664.80) to participate in a scheme to support e-commerce merchants.
The transfer had been made to Sino Allied (HK) Limited on June 25.
However, Kitchen Culture noted that “formal board approval was not obtained before execution of the transactions and the transfer”.
"With the benefit of legal advice, the board has deliberated the circumstances surrounding the transactions and the transfer and have resolved to procure KC Technologies to take steps to unwind the transactions and the transfer," the group added in a Sep 29 regulatory filing.
Kitchen Culture is also unwinding two other transactions – an agreement between KC Technologies and Sino Allied (HK) Limited dated June 1 as well as an undated agreement between the latter and Wisechain Fintech (HK) Limited.
Meanwhile, the catalist-listed company revealed that a report had been lodged with the Commercial Affairs Department (CAD) on Aug 6 against interim CEO Lincoln Teo.
The report – which had been made by former CEO Lim Wee Li – was flagged to the board on Aug 11.
Lim had made the report in his personal capacity as the director of the company.
Contents of the report include allegations against Teo for carrying out the transfer of funds without getting the board’s approval.
The board says it has yet to be contacted by the CAD by will cooperate fully with the relevant authorities if and when needed.
Shares in Kitchen Culture last traded at 8 cents before the company called for a trading halt on July 7.
Cover image: Kitchen Culture