No Signboard suspends CEO Sam Lim amid price rigging charges
RESTAURANT operator No Signboard Holdings’ board has put chief executive officer Sam Lim on a leave of absence from Tuesday (Aug 8), pending the resolution of the proceedings related to the charges against him.
In a bourse filing on Tuesday, the board said that he will remain as a director during his suspension.
Non-executive director Lim Teck-Ean will be re-designated as an executive director and made interim CEO.
Lim Teck-Ean’s “immediate focus” will be to obtain the Singapore Exchange’s approval for the resumption of trading of the company’s shares, the board said, adding that it does not expect Sam Lim’s suspension to materially affect the group’s existing business operations and its ability to resume trading of the company’s shares.
On Jul 27, Sam Lim was charged with share price rigging offences under the Securities and Futures Act. If convicted, he may be jailed for up to seven years or fined up to $250,000, or both.
In the announcement, the board also explained why it has not convened an extraordinary general meeting (EGM) was requisitioned by No Signboard’s controlling shareholder GuGong.
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GuGong is controlled by Sam Lim, who is also a joint signatory of a number of No Signboard’s operational bank accounts.
The purpose of the EGM is to remove at least five of No Signboard’s directors and appoint new ones in their places.
Gazelle Ventures, an entity that had offered rescue financing to No Signboard, has commenced an originating application in the High Court for an injunction to prevent Sam Lim, GuGong and the company from taking steps to pass resolutions within the notice of requisition.
The first case conference relating to the application has been fixed for Aug 29.
Resumption of business at Little Sheep outlet
In the same bourse filing, the board said that No Signboard has agreed on a payment schedule with Little Sheep Hong Kong Company and obtained approval to continue operating its Little Sheep Hotpot outlet at Orchard Gateway.
This comes after hotpot chain Little Sheep terminated its franchise agreement with No Signboard, as the latter had failed to open the required number of outlets under the agreement.
The company also had an outstanding payment of a two-month security deposit to its landlord at Orchard Gateway.
Still, the board reiterated that the group intends to undergo a rebranding exercise, which could involve the re-naming of existing brands when trading of the company’s shares resumes.
Shares of the company have been suspended since Jan 24, 2022. (* see amendment note below)
No Signboard added that it has also been searching for acquisition targets, and is in the final stages of discussions to acquire a food and beverage business.
*Clarification note: This article was edited on Aug 10 to clarify that it is Gazelle Ventures that has commenced legal action to prevent an EGM.
* Amendment note: The article had earlier said that No Signboard has been suspended since Jan 24, 2023. It was actually suspended in Jan 24, 2022.
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