SINGAPORE - Kitchen Culture and its former chief executive Lim Wee Li have discontinued their respective legal proceedings against each other after agreeing to a settlement.

In 2021, Lim and Kitchen Culture respectively filed a claim and counterclaim on the basis that the group had allegedly wrongfully terminated Lim as chief executive.

Both parties have filed notices of discontinuation on Jan 11, Kitchen Culture said in a bourse filing on Tuesday (Jan 17). With these notices, the group said it is no longer involved in any proceedings involving Lim’s suit.

This comes after the group said on Jan 10 that it entered into a legal settlement with Lim on Dec 28, following “without prejudice negotiations” between April 2022 and December 2022.

The board had taken into consideration the merits of Lim’s claims, the company’s present financial situation, the present status of litigation between both parties, and the costs incurred to date in connection with the case when arriving at its decision to settle.

In the same Jan 10 announcement, Kitchen Culture’s board said it was no longer involved in any legal proceedings in connection with subsidiary KHL Marketing Asia-Pacific’s action against Lim and two foreign nationals to recover S$520,000. The two foreign nationals withdrew their counterclaim against Kitchen Culture on Nov 9, 2022.

Meanwhile, the defamation suit started by Lim against two of the company’s independent directors, has also been discontinued.

The legal proceedings conclude at a time when Kitchen Culture faces intense boardroom drama as two parties fight to seek control of the company. The group’s largest shareholder, Ooway Group, is attempting to replace all members of the board, save for non-executive, non-independent director Hao Dongting, who is Ooway’s director. THE BUSINESS TIMES