The former Executive Chairman (Lim Hee Liat (“Lim”)) and the former Executive Director (Chia Cher Khiang (“Chia”)) of Catalist-listed Kimly Limited (“Kimly”) have each pleaded guilty to one count of an offence under Section 203(1) read with Section 203(2) read with Section 331(1) of the Securities and Futures Act.
The charge faced by both persons relate to Kimly’s acquisition of Asian Story Corporation Pte Ltd (“ASC”), which was announced on 2 July 2018. The acquisition was an interested person transaction by virtue of Lim’s partial beneficial ownership of ASC, and thus had to be disclosed and immediately announced under the SGX Catalist Rules. However, the two persons – who were the only two executive directors of Kimly at the time – intentionally failed to disclose information regarding Lim’s partial beneficial ownership in ASC, which resulted in Kimly’s offence of intentional failure to make the necessary disclosure to the SGX – an offence which was committed with the consent of both persons.
Lim was sentenced to a fine of $150,000, while Chia was sentenced to a fine of $100,000. In respect to Lim, a charge under Section 156 of the Companies Act, for failing to disclose to Kimly that he had a partial beneficial ownership in ASC and thereby had an indirect interest in the acquisition, was also taken into consideration for the purposes of sentencing. Both persons have also been disqualified from acting as a director of any company for a mandatory five-year period, under Section 154 of the Companies Act.
SINGAPORE POLICE FORCE
16 February 2022 @ 12:56 PM