The Australian Securities and Investments Commission (ASIC) is seeking leave to appeal a Supreme Court of New South Wales ruling that three former Regional Express Holdings Limited (Rex) non-executive directors did not breach their directors’ duties over a profit forecast issued on February 28, 2023. The challenge concerns the findings relating to John Sharp, Siddharth Khotkar and Lincoln Pan, which ASIC considers contained errors. The court ruled on June 30, 2026, that Rex breached its continuous disclosure obligations in relation to the forecast from April 14, 2023. However, it found neither a breach of directors’ duties by the three non-executive directors nor misleading conduct by Rex. ASIC is not challenging the ruling concerning Rex. The court will determine the application for leave to appeal on a date yet to be decided. In a separate outcome from the proceedings ASIC began in December 2024, the court on October 20, 2026, disqualified former Rex chief executive officer and executive chairman Lim Kim Hai for four years and imposed an AUD 800,000 penalty. He had admitted involvement in Rex’s continuous disclosure breaches and breaches of his directors’ duties.
Australian Securities and Investments Commission seeks leave to appeal ruling on former Rex directors’ duties
The Australian Securities and Investments Commission is seeking permission to appeal the finding that former Rex non-executive directors John Sharp, Siddharth Khotkar and Lincoln Pan did not breach their directors’ duties over a February 2023 profit forecast. The challenge does not extend to the ruling concerning Rex, which was found to have breached its continuous disclosure obligations but not to have engaged in misleading conduct. A date for determining the application has not been set.