Kitchen Culture said Wednesday it would seek to unwind a transfer of US$480,010 made to Sino Allied (HK), with Director Lim Wee Li lodging a report with the Commercial Affairs Department (CAD) of the Singapore Police over the deal.
Kitchen Culture subsidiary KC Technologies had entered agreements to provide support to e-commerce merchants, including a June deal with Sino Allied (HK) and an undated agreement with Wisechain Fintech (HK), the company said in a filing to SGX.
Under those agreements, Kitchen Culture had transferred US$480,010 to Sino Allied (HK), the filing said.
“Formal board approval was not obtained before execution of the transactions and the transfer. The company wishes to inform its shareholders that, 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,” Kitchen Culture said.
In addition, Kitchen Culture said Lim Wee Li, who is currently a non-executive director and who had held the role of CEO until July, had lodged a report with the CAD in August against interim CEO Lincoln Teo Choong Han. The report alleged Tan carried out the transfer without board approval, the filing said.
“While Mr. Lim is presently a director of the company, the CAD report was made by Mr. Lim in his personal capacity as a director of the company. As at the date of this announcement, the company has not been contacted by the CAD,” Kitchen Culture said. “The board will fully cooperate with the relevant authorities if and when needed.”
Shenton Wire is unable to contact Lincoln Teo for comment on the allegations.
In August, Kitchen Culture subsidiary KHL Marketing Asia-Pacific sued former CEO Lim Wee Li and two foreign nationals to recover S$520,000, alleging Lim breached his duties to KHL to make the payments for “wrongful purpose,” according to a Business Times report. Kitchen Culture had previously said Lim’s dismissal as CEO was based on findings from a report by Baker Tilly Consultancy.