Kimly's ex-directors, fined for offences, hired as consultants to the company

SINGAPORE (THE BUSINESS TIMES) - Two former directors of Kimly have been engaged as independent consultants to the coffee shop operator after being fined by the State Courts and disqualified from serving as directors in companies for five years.

Former executive chairman Lim Hee Liat was fined $150,000 and former executive director Chia Cher Khiang was fined $100,000 last month for offences under the Securities and Futures Act. Lim was further charged under the Companies Act, with the charges relating to the 2018 acquisition of drinks company Asian Story Corporation.

Kimly said in a filing on Wednesday evening (March 2) that it aims to leverage the collective 50 years of experience, knowledge, market intelligence and relationships between the two former directors. Lim and Chia will be engaged to provide advisory and consultancy on:

• Developing business strategies in the expansion of Kimly's coffee shop segment;

• Assessing Kimly's stability, sustainability, resilience and growth areas;

• Improving integration, synergies and cost efficiency of Kimly's business, partnerships and new outlets;

• Streamlining operations with centralised functions such as central kitchens and procurement;

• Identifying and introducing business opportunities.

The pair will be paid by the hour at rates that factor in their seniority, experience, track record and credentials. Kimly has engaged human resource consultancy Willis Towers Watson to provide a proposal on appropriate fee benchmarking and incentives.

"As independent consultants, they will perform their services under the supervision of the management of the group, which will in turn report and provide updates on a periodic basis to the board, including appraisal and achievements of performance targets, timelines and milestones which may be set," said Kimly.

The nominating committee has approved the engagement of Lim and Chia on the grounds of their personal interactions with and observations of the duo, said the company. It added that other salient factors include Lim and Chia’s remorse and regret at their misjudgment, their conduct, commitment and cooperation since, and the effort made to minimise the impact of their actions on the company.

Shares of Kimly were down 0.5 cent, or 1.3 per cent, at 38.5 cents at 10.13am on Thursday.