Change - Announcement of Cessation::Re-designation of Mr Lim Yew Khang Cecil from ED to Non-Executive and Non-Independent Director

Issuer & Securities

Issuer/ Manager
CHEMICAL INDUSTRIES (FAR EAST) LIMITED.
Securities
CHEMICAL INDUSTRIES (F.E.) LTD - SG1B37000984 - C05
Stapled Security
No

Announcement Details

Announcement Title
Change - Announcement of Cessation
Date &Time of Broadcast
28-Sep-2021 22:28:03
Status
New
Announcement Sub Title
Re-designation of Mr Lim Yew Khang Cecil from ED to Non-Executive and Non-Independent Director
Announcement Reference
SG210928OTHRZKWD
Submitted By (Co./ Ind. Name)
Foo Soon Soo
Designation
Company Secretary
Description (Please provide a detailed description of the event in the box below)
Re-designation of Mr Lim Yew Khang Cecil from Executive Director to Non-Executive Director and Non-Independent Director

Additional Details

Name Of Person
Lim Yew Khang Cecil
Age
68
Is effective date of cessation known?
Yes
If yes, please provide the date
28/09/2021
Detailed Reason (s) for cessation
The appointment of Mr Chng Hee Kok as Interim Chief Executive Officer, the re-designation of Mr Lim Soo Peng from the Managing Director ("MD") to an Executive Director and re-designation of Mr Cecil Lim as Executive Director to Non-Executive Director, announced on 28 September 2021, are in line with the overall strategy of the Company to move from a family-run company to one that is professionally managed, as set out in the address of the MD to the shareholders at the AGM on 21 July 2021 and endorsed by the Nominating Committee and the Board.

Mr Cecil Lim's employment as Executive Director was ceased in accordance with the provisions of his employment contract with the Company.

Please refer to the Company's general announcement dated 28 September 2021 on the changes to board of directors and corporate management for more details.
Are there any unresolved differences in opinion on material matters between the person and the board of directors, including matters which would have a material impact on the group or its financial reporting?
Yes
If Yes, Please provide full details
Mr Cecil Lim has made the following comments:

"I have repeatedly urged the board of directors ("Board") to file a police report in respect of certain suspected misappropriation transactions. The concerns were raised repeatedly by me despite difficulties that I encounter in obtaining relevant information pertaining to the foregoing. I note that to date, no police report has been made by the Board. I have also urged the Board to announce the fact that I have in my personal capacity made a police report on the same subject matter, and, despite repeated reminders, no such announcement has been made by the Board.

I have also raised concerns about the process and scope of the appointment of certain professionals recently appointed by the Board, and have sought but was not provided with information relating to the scope of engagement of these professionals.

I have also raised concerns with the process of appointment and scope of responsibility of an advisor to the Company and had also then raised queries as to whether individuals involved in the decision making-process have declared all dealings with such advisor.

For completeness, I note that a fellow member of the Board who shared my views on the need to make an immediate police report will be stepping down as a director on or around this time, [though I am not fully appraised of the reasons for the same]."
Is there any matter in relation to the cessation that needs to be brought to the attention of the shareholders of the listed issuer?
Yes
If Yes, Please provide full details
Mr Cecil Lim has made the following comments:

"I have the following concerns in relation to the manner that my appointment as Executive Director was terminated. I was notified today that my appointment as Executive Director, effective immediately, and salary in lieu of notice would be paid to me. This was despite my offer to stay on to ensure continuity in the management and operations of the Company given the potential change in the composition of the Board, and that I was one of the two Executive Directors on the Board, and was actively involved in the management and operations of the Group. The rationale provided by the Board for preferring to terminate me with salary in lieu, and not to take advantage of my offer was that the current Managing Director of the Company, Mr Lim Soo Peng, would be re-designated from the Managing Director and Executive Director to Executive Director with effect from 1 October 2021, with him relinquishing his position as Executive Director on 31 December 2021. This was the position taken by the Board despite my repeated concerns raised, based on medical reports I have, or that I have sighted, which, coupled with the advanced age of Mr Lim of [92], has given me justifiable concerns of Mr Lim Soo Peng as an Executive Director of a Mainboard-listed issuer."
Any other relevant information to be provided to shareholders of the listed issuer?
No
Date of Appointment to current position
15/09/2016
Does the AC have a minimum of 3 members (taking into account this cessation)?
Yes
Number of Independent Directors currently resident in Singapore (taking into account this cessation)
4
Number of cessations of appointments specified in Listing Rule 704 (7) or Catalist Rule 704 (6) over the past 12 months
5
Job Title (e.g. Lead ID, AC Chairman, AC Member etc.)
Executive Director
Role and responsibilities
Assisting the MD in strategic planning, commercial and business development of the Group as well as in overseeing the Group's operations in Myanmar.
Familial relationship with any director and/ or substantial shareholder of the listed issuer or of any of its principal subsidiaries
Son of Managing Director, Mr Lim Soo Peng
Brother of Non-Executive and Non-Independent Director, Mr Lim Yew Nghee
Shareholding interest in the listed issuer and its subsidiaries?
Yes
Shareholding Details
Direct interest of 14,000 shares, 0.02%
Past (for the last 5 years)
None
Present
Auston Institute of Management Pte Ltd