The Australian Securities & Investments Commission announced that the Supreme Court of New South Wales found Regional Express Holdings Limited breached its continuous disclosure obligations in relation to its 28 February 2023 profit forecast. The court held that, from 14 April 2023, Rex did not have reasonable grounds to expect the group would deliver positive operating profits for the full FY23, despite having told the market it was optimistic that outcome would be achieved absent further external shocks. Rex later downgraded its outlook on 20 June 2023, forecasting a AUD 35 million group operational loss, and entered voluntary administration on 30 July 2024. ASIC was unsuccessful in its alleged misleading conduct case against Rex and in its case against former non-executive directors John Sharp, Siddharth Khotkar and Lincoln Pan for alleged breaches of directors' duties. The decision follows the admission by former executive chair Lim Kim Hai to all alleged contraventions against him, including his involvement in the continuous disclosure breach and his acceptance that he should face a pecuniary penalty and disqualification orders. The matter will return to court for a hearing on the relief to be imposed on Mr Lim.
Australian Securities & Investments Commission2026-06-30
Australian Securities & Investments Commission secures court finding that Rex breached continuous disclosure over 2023 profit forecast
ASIC announced that the Supreme Court of New South Wales found Regional Express Holdings Limited breached continuous disclosure obligations tied to its 28 February 2023 profit forecast. The court held Rex lacked reasonable grounds from 14 April 2023 to expect positive FY23 operating profits, before the company later downgraded to a AUD 35 million operational loss. The case will return to court for relief against former executive chair Lim Kim Hai.