Kitchen Culture to unwind unapproved payment; CAD report lodged against interim CEO
EMBATTLED household furniture and accessories distributor Kitchen Culture Holdings on Wednesday announced that it is unwinding the transfer of US$480,010 by subsidiary KC Technologies to participate in a scheme to provide support to e-commerce merchants.
Kitchen Culture is also unwinding two transactions: an agreement between KC Technologies and Sino Allied (HK) Limited dated June 1, and an undated agreement between the subsidiary and Wisechain Fintech (HK) Limited.
Kitchen Culture had transferred the amount to Sino Allied on June 25.
However, Kitchen Culture disclosed in a bourse filing on Wednesday that "formal board approval was not obtained before execution of the transactions and the transfer".
"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," the group said.
Further, the board of Kitchen Culture revealed that a report had been lodged with the Commercial Affairs Department (CAD) on Aug 6 against interim chief executive officer Lincoln Teo Choong Han.
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The board said it had been informed on Aug 11 by former CEO Lim Wee Li that he had lodged the report against Mr Teo.
Kitchen Culture said the CAD report contained allegations that Mr Teo had carried out the transfer of funds without the requisite approval of the board.
It added that the CAD report was lodged by Mr Lim in his personal capacity as a director of the company.
The board said it has not yet been contacted by the CAD, but will fully cooperate with the relevant authorities if and when needed.
The Catalist-listed Kitchen Culture called for a trading halt on July 7. Its shares last traded at S$0.08.
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