NO SIGNBOARD’S : 1G6 0% controlling shareholder GuGong was granted permission by the High Court on Monday (Sep 25) to withdraw its intellectual property (IP) injunction application, five days after both parties reinstated their IP sales and purchase agreement.

The High Court also ordered Catalist-listed No Signboard to pay GuGong legal costs of S$6,500 with “reasonable disbursements”.

The latest update to the legal dispute between both parties was provided by No Signboard in a Singapore Exchange filing on Tuesday night. No Signboard, which is best known for its seafood brand, said that its board is currently seeking legal advice on arbitration proceedings.

The legal dispute between the restaurant operator and its largest shareholder pertains to a disagreement over a settlement offer that both parties had initially agreed upon. The settlement offer included reinstating an IP sales and purchase agreement, and an independent contractor agreement, which were originally entered into on Dec 9, 2022.

The IP sales and purchase agreement allows No Signboard to sell GuGong all its rights, title and interest in the trademarks and brand insignia associated with the enterprise and operations of its seafood and restaurant business.

The independent contractor agreement allows the restaurant operator to engage GuGong’s services for operational matters. These include setting up new outlets in Asia, identifying potential opportunities in line with its strategic plan and assisting in the transition of daily operations to the new management.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Disputes over the agreements arose after No Signboard terminated them in March this year. It said that the move would purportedly “expedite the completion” of a proposed investment.

GuGong subsequently alleged that the restaurant operator’s “unilateral termination” was “unlawful and in breach of the agreements”, and demanded a retraction of the notice of termination.

In June this year, both sides agreed to work towards a resolution on the dispute after GuGong failed to accept the final settlement offer by the Jun 21 deadline.

On Sep 20, the High Court ordered the reinstatement of the independent contractor agreement. On the same day, both parties reinstated the IP sales and purchase agreement and indicated to the court their in-principle agreement to withdraw the IP sales and purchase agreement injunction application.

No Signboard has made the news in recent years over its struggle in the pandemic years to a requisition from GuGong to oust the board, and the arrest of substantial shareholder and former director Su Haijin in the billion-dollar money-laundering bust.

Shares of No Signboard have been suspended from trading since Jan 24, 2022.