COFFEE shop and food court operator Kimly $ Kimly: 1D0 +2.7% on Tuesday (Nov 16) said it does not have any plans to appoint new executive directors, following the resignation of former executive chairman Lim Hee Liat and former executive director and chief executive officer Chia Cher Khiang.

 

Lim and Chia had resigned from their roles in the company on Nov 11, after they were charged under the Securities and Futures Act for failing to notify the Singapore Exchange (SGX) that Kimly' s acquisition of Asian Story Corporation (ASC) was an interested person transaction.

 

Separately, Lim has also been charged under the Companies Act for failing to disclose that ASC was a company which was partially beneficially owned by him.

 

Following the resignations of its 2 executive directors, Kimly has re-designated finance director Karen Wong as executive director.

 

Three others - Danny Lim, Jeffrey Wee and Lau Chin Huat - remain as independent directors on the board.

 

In response to queries from Singapore Exchange Regulation (SGX Regco), which noted that the board now only comprised 4 members, with Wong as the only executive director, Kimly said it " does not currently expect to appoint new executive directors" .

 

The group said that, with the appointment of 3 new executive officers - Yeo Yien Gee Ronnie, Chua Yong Chuan Kelvin and Lin Meiqi - it now has a total of 5 executive officers to assist the board.

 

" The board is confident that these changes to the management structure will sufficiently allow it to oversee the group and its businesses," Kimly said. " The board is keenly aware of the operational needs of the business and will continuously assess its management and operational structure and personnel for maximum efficacy and results."

 

In addition, the group said that Lim and Chia will remain as employees of the group for at least 3 months to facilitate the transition for the group following their resignations and to minimise disruption to the group' s operations.

 

The group added that it had requested that Lim and Chia remain as employees of the group in the interim to help manage the confidence of suppliers and third party coffeeshop owners as well as maintain the stability of employees' morale, among other things.

 

Lim is the founder and controlling shareholder of Kimly with an approximately 42 per cent stake in the company while Chia had been the group' s executive director and CEO since its IPO in 2017.

 

Describing the pair as having been " instrumental in the success and profitability of the group" , Kimly said their continued service in the company " will be made at all times under the leadership, direction and supervision of the board and the management team" .

 

" Pending the conclusion of court proceedings, their roles as employees are currently on a 3 months basis, subject to mutual extension," it added. " In the meantime, the group will also consider engaging a reputable external human resource consultant to assist in the evaluation of their continued involvement with the group."

 

While Kimly said that the cessation of the pair would have an impact on the group in the short term, it added that the group remains on track for growth and expansion and is confident of its future prospects.

 

The group also declared that there are no bank covenants tied to Lim or Chia' s continued role as directors or key management of the company.

COFFEE shop and food court operator Kimly $ Kimly: 1D0 -3.85% on Thursday (Nov 11) announced changes to its board and management following the resignation of 2 of its directors.

 

Former executive chairman Lim Hee Liat and former executive director Chia Cher Khiang resigned on Thursday after they were each charged for an offence under the Securities and Futures Act, in relation to the company' s failure to notify the Singapore Exchange that its acquisition of Asian Story Corporation (ASC) was an interested person transaction.

 

Lim was also separately charged under the Companies Act for failing to disclose - during or before the acquisition - that ASC was a company which was partially beneficially owned by him.

 

Following the resignations, Lau Chin Huat, currently an independent director on the board, was redesignated as non-executive independent chairman, while Wong Kok Yoong Karen, currently the board' s finance director, was redesignated as executive director. Wong will also be appointed to the nominating committee to replace Lim.

 

In addition, Kimly also made changes to its management team " to strengthen the leadership team and for the purposes of succession planning" .

 

It included 2 members of its current management team as executive officers - Yeo Yien Gee Ronnie, director of operations for its food retail division, and Chua Yong Chuan Kelvin, managing director of Tenderfresh Group.

 

Yeo' s role as director of operations involves the overall management and oversight of the group' s food retail division, while Chua is responsible for the overall management and oversight of the operations and resources of Tenderfresh as its managing director.

 

Kimly also appointed Lin Meiqi, who joined the group as a group finance manager, as the financial controller of the company. In her new role, she will be responsible for financial reporting, overall finance functions and accounting matters.

 

Existing executive officer Tan Chong Sing Roy will relinquish his role as head of operations and be appointed as the director of business development and strategic planning of the group. In his new role, he will be responsible for the group' s growth strategies and investor relations, as well as overseeing the human resource and marketing departments.

 

Kimly' s other executive officer Peh Kim Leong Sunny will remain as director of operations for its outlet management division.

 

Kimly' s board has requested Lim and Chia to remain as employees of the group to assist and facilitate the board and management in the transition, pending the conclusion of court proceedings, the group said.

 

This was in consideration of the two' s experience, Lim' s role as founding shareholder of the group, Chia' s contributions since he joined in 2006, as well as notable achievements the group made during the two' s tenure.