SINGAPORE - He had a partial beneficial ownership in drinks company Asian Story Corporation (ASC) which Kimly, where he was a director, acquired in 2018, but purportedly did not disclose the fact to the coffee shop operator.

On Friday (Nov 12), Lim Hee Liat, who resigned as Kimly's executive chairman on Thursday, was charged with one count under the Companies Act for allegedly failing to disclose his interest in the acquisition of ASC to Kimly.

Lim was hauled up over another matter too.

He and Chia Cher Khiang, who resigned as Kimly's executive director on Thursday, were each charged under the Securities and Futures Act with one count of failing to notify the Singapore Exchange (SGX) of Kimly's acquisition of ASC.

The police said Kimly's acquisition was allegedly an interested person transaction, given Lim's partial beneficial ownership of ASC.

This meant that the transaction should have been disclosed under SGX Catalist rules, but purportedly was not.

Alain Ong Eng Sin, former chief executive of beverage company Pokka International, has also been hauled up for allegedly not disclosing his link with ASC to his employer.

On Friday, the police said Ong, whose wife, actress Vivian Lai, used to appear in Pokka advertisements, faces three charges under the Companies Act.

Ong, who was also a director in Pokka International and Pokka Corporation (Singapore), allegedly had partial beneficial ownership of ASC, and failed to disclose his interest to the two Pokka entities on three occasions when they and ASC entered into transactions.

Ong, who became a non-executive and non-independent director of Kimly in February 2017, was asked to leave Pokka International in September 2018.

In November 2018, it was reported that Kimly was backing out of its $16 million ASC acquisition, following an investigation by the authorities.

In 2019, Pokka sued Ong, accusing him of working with others to divert business to ASC and inflating the value of ASC in anticipation of its acquisition by Kimly, alleging that he had breached his duties as a director and employee.

The $10 million lawsuit was settled out of court in April last year, but details were not revealed.

In a regulatory update on Thursday, Kimly, which also runs foodcourts, said Chia and Lim have notified the board of their resignations.

Kimly's board has requested the two to remain as employees to assist and facilitate the board and management in the transition, pending the conclusion of court proceedings, the group said.

Those convicted of offences under the Securities and Futures Act can be jailed for up to seven years, fined up to $250,000 or both.

Those convicted of offences under the Companies Act can be jailed for up to 12 months or fined up to $5,000.