Kitchen Culture extends indemnities to directors

KITCHEN Culture is extending indemnities to its directors in relation to a letter of demand sent by former chief executive officer, Lim Wee Li in August 2021.

In a filing after market hours on Friday (Mar 4), the kitchen-equipment provider announced that directors William Teo and Ang Lian Kiat, and chief executive officer Lincoln Teo, will be indemnified out of the company's assets against any losses and costs from Lim's letter of demand.

Lim alleged that Teo and Ang's statements as part of the company's nominating committee were defamatory and damaged his reputation. Lim also charged that Teo had defamed him and damaged his reputation in statements made while executing his duty as chief executive.

The board approved the indemnity sought by the trio, with Lim abstaining from voting on both matters. Directors Teo and Ang abstained from voting on their matter, and Teo abstained from voting on his.

Kitchen Culture cited Article 172 of the Company's Constitution, which provides for indemnity out of the company's assets for directors in the course of executing their duties. The company is obliged to provide the relevant indemnities requested.

Lim has commenced legal proceedings against the trio. The current costs of indemnifying directors Ang and Teo include legal fees and costs of S$86,000, a S$30,000 deposit for their lawyer and S$26,000 payable to Lim in relation to the dismissal of the application and appeal to strike out the lawsuit.

Legal fees and costs for Teo have amounted to S$39,000. In total, S$181,000 has been spent on indemnifying the trio.

As legal proceedings are ongoing, Kitchen Culture is unable to ascertain the financial impact of the indemnities. The company will provide updates on material developments in the lawsuits and the total amount indemnified after the suits have been completed.

Trading of Kitchen Culture shares has been suspended since July 2021, when the shares last traded at S$0.08.

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