Kimly’s executive chairman Lim Hee Liat and its executive director Chia Cher Khiang have each been charged by the Commercial Affairs Department (CAD) for an offence under Section 331 (1) of the Securities and Futures Act (SFA).
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The charges against Lim and Chia were in relation to Kimly’s failure to notify the Singapore Exchange Limited (SGX) that its acquisition of Asian Story Corporation was an interested person transaction.
Such transactions are required to be announced immediately under Rule 905(1) of the SGX Catalist listing rules.
As such, Kimly had committed an offence under the SFA, which was committed with Lim and Chia’s consent as directors of the company.
Lim has also been separately charged under Section 156 (15) of the Companies Act, as he had failed to disclose that ASC was a company which was partially beneficially owned by him once the facts came to his knowledge.
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The acquisition of ASC has already been rescinded by Kimly.
Lim and Chia have both resigned as directors of Kimly on Nov 11.
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Following their resignations, Lau Chin Huat, an independent director on the board has been redesignated as non-executive independent chairman.
Pending the conclusion of court proceedings, the board has requested Lim and Chia to remain as employees of the group.
Wong Kok Yoong Karen, Kimly’s current finance director, has been redesignated as executive director. She will also be appointed to the nominating committee to replace Lim.
In addition, Kimly has appointed Lin Meiqi, the group’s group finance manager, as financial controller. It has also included two additional members of its current management team as executive officers.
On Nov 11, Ronnie Yeo Yien Gee, director of operations for Kimly Food Retail Division is now an executive officer of the company.
Kelvin Chua Yong Chuan, managing director of Tenderfresh Group has also joined as the executive officer of the company.
The existing executive officer, Tan Chong Sing Roy, will relinquish his role as head of operations. Tan will be appointed as the director of business development and strategic planning of the group.
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The existing executive officer, Peh Kim Leong Sunny will remain as the director of operations for the Outlet Management Division.
Kimly will be releasing its full year results on or around Nov 25.
Shares in Kimly closed 1.5 cents lower or 3.85% down at 37.5 cents on Nov 11.
Photo: Albert Chua/The Edge Singapore