KTL says legal services by Chevalier Law not rendered by its independent director

SUSPENDED counter KTL Global has clarified that while it had engaged the legal services of Chevalier Law, where its independent and non-executive director Chong Eng Wee is managing director and holds more than 30 per cent interest, the services were not rendered by Chong himself.

The mainboard-listed distributor of fresh vegetables and fruit was responding to queries from Singapore Exchange Securities Trading (SGX-ST) in a bourse filling on Wednesday (Mar 30).

SGX-ST had sought clarification following the company's announcement on Mar 22 that Chong "provides a sense of continuity to the company and offers guidance and legal advice when necessary".

The announcement related to a proposal to convene an extraordinary general meeting to seek its shareholders' ratification of the legal interested-person transactions it entered into with the law firm.

On Wednesday, KTL Global said the legal services were rendered by other directors or lawyers at Chevalier Law.

It added that the reference to "legal advice where necessary" referred to the ad hoc legal advice which Chong gave to the company's new management team from time to time. These pertained to issues arising from the group's day-to-day operations or compliance with applicable laws and regulations, it said. "Such ad hoc legal advice is neither part of the legal interested-person transactions (referred to in the Mar 22 announcement) nor services chargeable by Chevalier Law," it stressed.

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KTL Global, meanwhile, said that the Board believes that its approach shows the value in having a qualified lawyer as part of the diversity of skills, expertise and experience offered by the different directors.