Full-yr net loss of $12.5 mil racked up by property investment firm Imperium Crown means it may be in trouble for paying out dividends.

Its external auditors told the board of " possible irregularities" relating to authorisation and payment of $489,000 in interim dividends in Feb-2016. The Companies Act allows dividends to be paid only out of profits already generated. But Imperium Crown gave shareholders interim dividends of 0.1c per share, despite a net loss from continuing operations of $880,000 in the six months ended Dec 31.

It was expecting a strong turnaround in the 2nd half, but statement from directors suggested otherwise, with reference to a " challenging" global economic climate. And last night' s statement of loss for the 12 months to June 30 affirms this.

Imperium Crown (IC) was renamed after taking over Communication Design Int' l, and it does not have a fixed dividend policy.

In February 2016, chairman and CEO. Mark Lim was the largest shareholder with 30% stake. He sold his shares and resigned in April.

Shareholders later voted to replaced the rest of the old board, including founder David Bay, at an Extraordinary General Meeting (EGM) in June. Mr John Lyn then emerged as the new CEO, but departed after less than two mths in the job, " without holding share, he is to pursue his other personal interests" . He is replaced by Mr Wan Jinn Woei, a director of Third Rose Asia, which emerged as largest stakeholder in Imperium. Mr Wan is also business development director of Megaharta Real Estate.

Imperium Crown said last night that it is still seeking legal advice on possible dividend irregularities, including its right of recourse.

On dividend irregularity, it tend to be tricky. Ms Andrea Chee, partner at law firm Shook Lin & Bok, told Straits Times: " Rule is no dividends are payable except out of profit. The problem is the Companies Act doesn' t define profit."