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Rex Misled Market with Big Talk Before $31.7m Loss
- On Tuesday, the NSW Supreme Court found Regional Express Holdings and former executive chairman Lim Kim Hai breached continuous disclosure obligations tied to a February 2023 profit forecast.
- The Australian Securities and Investments Commission argued the airline misled the market by claiming 'positive operating profits' without reasonable grounds, before revealing a $31.7 million loss months later.
- While Justice Ashley Black ruled against Lim, who had admitted to the breaches, the court found three other former directors—John Sharp, Lincoln Pan, and Siddharth Khotkar—did not breach their duties.
- A penalty hearing will determine consequences for Lim and Rex at a future date. Rex, which collapsed with about $500 million in debt, continues operating regional routes under new US-based ownership.
- ASIC Chair Sarah Court emphasized it is 'critical that investors have access to accurate and timely information' for investment decisions, underscoring continuous disclosure's role in Australia's corporate governance framework.
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ASIC wins case against Rex but fails in claims against non-executive directors
Save (0) Please login to bookmarkClose Username or Email Address Password Remember Me ASIC has won its case alleging collapsed budget airline Regional Express failed to correct an optimistic guidance before it entered administration last year, but failed to make out its case against the company’s non-executive directors. Subscribe to Lawyerly to access this article.Already a subscriber? Username or Email Address …
Sydney Morning HeraldReposted by 
The Age
The AgeEx-transport minister John Sharp, directors cleared of breaching duties at Rex
Rex Airlines has been found to have misled the sharemarket, but the corporate cop did not prove its case against some former non-executive directors.
·North Sydney, Australia
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Total News Sources17
Leaning Left7Leaning Right2Center4Last UpdatedBias Distribution54% Left
Bias Distribution
- 54% of the sources lean Left
54% Left
L 54%
C 31%
15%
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