Japan Foods' lead independent director investigated by CAD over alleged insider information offence

Japan Foods Holding's lead independent director is out on bail after an interview by the Commercial Affairs Department (CAD) on Feb. 11.

Tan Cher Ting was under investigation for a purported offence under the Securities and Futures Act 2001 (SFA), specifically Section 219, for the conduct of persons in possession of inside information, reported The Business Times.

Inside information pertains to the possession of knowledge that could significantly influence the price of securities or stocks.

Laws prohibit those with such information from trading or advising others to do so.

The major Singapore-based restaurant business operates the franchise chains of Ajisen Ramen and Osaka Ohsho.

The company also owns developed brands such as Fruit Paradise and Milan Shokudo.

Investigation is a personal matter

According to BT, Japan Foods said Tan had informed the company that the investigation was a personal matter.

She said it did not concern the company's shares or business activities in a bourse filing with the stock exchange.

Tan was the lead independent director and also chaired the board's nominating committee before relinquishing her of both roles.

To the nominating committee and the board's knowledge, Tan has not been charged with any offences and has acted independently and professionally.

“Tan has confirmed that she will provide updates to the board as and when there are any material developments in relation to the investigation.”

Japan Foods reshuffles roles

Japan Foods is monitoring the situation and will reassess her suitability for appointment if material changes emerge.

Benny Lim, the chairperson of its remuneration committee, will replace Tan on the nominating committee.

The current chairman of the audit and risk committee, Jason Lee, will be appointed lead independent director.

Japan Foods was established in Singapore in 1997 and listed on the Singapore Exchange's Catalist Board, also referred to as the "junior board" for emerging companies, in February 2009. 

The group operates restaurants in Malaysia, Hong Kong, China and Indonesia under different franchising and operating agreements.

Top photo from Benedict Correya/Google Maps