Kitchen Culture ex-CEO's defamation claims are 'frivolous and without merit': board

KITCHEN Culture Holdings on Friday said former chief executive officer (CEO) Lim Wee Li's recent allegations against the company are "frivolous and without merit".

The company had on Aug 18 received a letter of demand from Mr Lim alleging that certain statements it made were "defamatory, untrue and have impugned Mr Lim's character, credit and integrity".

These statements relate to Kitchen Culture's response to queries from SGX-ST on July 12, in connection with its July 8 announcement on the cessation of Mr Lim as CEO, it said in a bourse filing.

The board, except for independent director Yap Sze Hon, is of the view that Mr Lim's allegations are frivolous and without merit.

It has engaged legal counsel to act for the company and to respond to Mr Lim's lawyers. If Mr Lim chooses to bring a claim against the company, it will "defend itself vigorously".

On July 8, the company announced that its board had, on the previous day, passed a resolution by a majority of director votes to cease Mr Lim's employment with immediate effect as the board is of "reasonable opinion" that Mr Lim is in "gross default or grave misconduct" in connection with, or affecting the company's business.

On July 12, it confirmed that the dismissal of Mr Lim was based on findings in an interim report from Baker Tilly Consultancy.

The review by Baker Tilly was initiated due to the group management's unsatisfactory response to questions raised by audit committee members at a board meeting in February regarding reasons for the re-allocation and utilisation of proceeds from certain fundraising exercises.

The Catalist-listed Kitchen Culture called for a trading halt on July 7. Its shares last traded at S$0.08.