Coffeeshop chain Kimly has scrapped its plan to engage former executive chairman Lim Hee Liat and former executive director Chia Cher Khiang as “independent consultants”.
The company had wanted to keep tapping the duo’s experience and expertise, following their recent conviction for breaching the Securities and Futures Act, which bars them from holding directorships or managing companies for five years.
“The company, Mr Lim and Mr Chia have mutually decided not to proceed with the engagement, in view of feedback and concerns received from stakeholders following the announcement,” states Kimly on March 12.
Kimly had announced on March 2 plans to engage Lim and Chia as “independent consultants” and has engaged HR firm Willis Towers Watsons Consulting (Singapore) to help determine the kind of hourly rates the duo ought to be paid.
“The board is grateful for and takes these feedback and concerns seriously, and will further evaluate and consider the matter together with its professional advisers, engage appropriately with stakeholders as well as take additional guidance from its sponsor and regulators,” the company adds.
In the meantime, Lim and Chia have reiterated their “continued commitment and support to the Kimly’s growth and expansion.”
See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%
“With their 41.3% substantial shareholdings, Mr Lim and Mr Chia’s interests are aligned with other shareholders in ensuring the group continues to perform well,” the company adds.
On Feb 16, Lim was fined $150,000 and Chia was fined $100,000 for not disclosing that Lim held a 30% stake in an entity called Asian Story Corporation that Kimly had wanted to acquire for $16 million back in 2018, which would count as an interested party transaction.
Kimly shares closed on March 11 at 39 cents, unchanged for the day but down 6.1% year to date.
