ECOWISE lead independent director (ID) Er Kwong Wah has resigned as lead ID of CFM Holdings and lead independent non-executive director of Chaswood Resources Holdings, effective Monday.

This to focus on a Singapore Exchange compliance notice issued to "another troubled listed company", both companies said in separate bourse filings on Monday.

Singapore Exchange Regulation on June 25 served ecoWise a notice of compliance to appoint two new IDs, commission an internal audit and an audit of its first-half 2021 results, as well as to form a new auditing committee (AC).

Chaswood Resources and CFM said that Mr Er has decided to focus on his other obligations and commitments by virtue of his directorships in other companies.

They noted he will be "devoting a substantial amount of his working hours" to comply with the notice of compliance of the "troubled listed company", which was not named.

CFM appointed Mr Er as its lead ID in July 2016. He was also its AC chairman and a member of the nominating committee (NC). With his stepping down, the company, which distributes and sells pharmaceutical products, will no longer be in compliance with Catalist rules which requires the AC to have at least three members.

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He took on the role of Chaswood Resource's lead independent non-executive director in September 2018. He was also the food and beverage operator's AC chairman as well as a member of the NC and remuneration committee (RC).

Similarly with his resignation from Chaswood Resource's board, the company will not be in compliance with Catalist rules. Its AC must have a minimum of three members, while the board must have at least two non-executive independent directors.

Both CFM and Chaswood Resources said they will also not be in compliance with various provisions under the Singapore Code of Corporate Governance 2018, regarding the compositions of the board, AC, NC and RC.

They will endeavour to fill the vacancies left by Mr Er within two months and not later than three months.

Chaswood Resources' shares have been suspended from trading since June 18, 2018. The group is undergoing a corporate restructuring exercise and operates restaurants under a home-grown brand, Italiannies in Malaysia.

Meanwhile, shares of CFM Holdings closed 1.89 per cent  higher at 27 cents on Tuesday.

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