LIM Yong Sim, the chief executive of restaurant operator No Signboard, will be put on a leave of absence and suspended from his executive duties, now that he has been charged with share price rigging offences under the Securities and Futures Act (SFA).

No Signboard’s nominating committee has recommended that he be replaced by non-executive director Lim Teck-Ean as interim CEO.

Lim Teck-Ean will step down as CEO of Gazelle Ventures, an investor in No Signboard, and be redesignated its executive director. He will be supported by No Signboard’s chief financial officer.

The nominating committee believes him suitable to helm the company because of his familiarity with its operations and the guidance he gave it in its application for its counter to resume trading. Trading in its shares has been suspended since January 2022.

The nominating committee made its recommendations after taking into consideration the seriousness and nature of the charges against Lim Yong Sim, No Signboard disclosed in a bourse filing on Friday (Aug 4).

The grandson of the company’s founder, he has been charged with three counts under Section 197(1)(b) of the SFA for creating a false appearance related to the price of the Catalist-listed No Signboard’s shares.

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He allegedly placed orders for No Signboard shares and traded them under the trading account of Gugong for the purpose of pushing up or supporting the stock’s price between Jun 19 and Jun 29, 2018, and again between Nov 30, 2018, and Jan 11, 2019.

No Signboard’s sponsor, PrimePartners Corporate Finance, has concurred with the recommendation to suspend him. It believes that his continued involvement as executive director and CEO could have a negative impact on minority shareholders’ confidence in the company.

No Signboard said it will make the announcements in relation to the redesignations in due course.

The board does not foresee any material impact on the company’s operations, nor on its ability to submit an updated proposal to resume trading in its shares.

If convicted, Lim may be jailed for up to seven years or fined up to S$250,000, or both.