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ASIC sues Rex Airlines over 'misleading' financial results ASIC sues Rex Airlines for ‘misleading’ conduct over 2023 financial results By Goda Labanauskaite December 11, 2024 Airlines A Periam Photography / Shutterstock.com The Australian Securities and Investments Commission (ASIC) has commenced legal proceedings in the Supreme Court of New South Wales, accusing Rex Airlines of engaging in “misleading and deceptive conduct”, as well as failing to meet disclosure requirements. In a press release published on December 11, 2024, Joe Longo, ASIC Chair, said that four board director members of Rex Airlines, Lim Kim Hai, John Sharp AM, Lincoln Pan, and Siddharth Khotkar, “failed to take steps to ensure the market had accurate information about the company’s financial performance.” ASIC also alleged that Rex made a misleading announcement on the Australian Securities Exchange (ASX) on February 28, 2023, claiming that the company was “optimistic the Group will have positive operating profits for the full fiscal year of 2023 barring any further external shocks.” However, ASIC is arguing that Rex did not have a “reasonable basis for that claim” because it had “incurred operating losses in …

Australian court finds collapsed airline Rex breached market disclosure ... June 30 (Reuters) – Australia’s securities regulator said on Tuesday that a New South Wales court found that formerly listed airline Regional Express Holdings (Rex) breached its disclosure obligations tied to a February 2023 profit forecast. Here are a few details: • Rex had said in its February 2023 announcement that it was “optimistic the Group will have positive operating profits for the full FY23, barring any further external shocks.” Join the discussion → Share your thoughts! Read more from our local writers → Fetal Alcohol Syndrome - Jim Casha • The Supreme Court of New South Wales found that the company did not have reasonable grounds to expect that the Rex Group would have those positive operating profits from 14 April 2023 onward, the Australian Securities and Investments Commission (ASIC) said. • Rex did not immediately respond to a Reuters request for comments. • The collapsed airline was bought out by U.S. aviation services provider Air T in 2025, a year after it entered voluntary administration. • The Australian corporate regulator added that the decision comes weeks after former Rex executive…

Rex misled with sky-high claims before $31.7m crash A regional airline breached core obligations when boasting profits were on the way before posting an eight-figure loss, says the watchdog which successfully pursued it in court. The NSW Supreme Court found embattled regional carrier Rex misled the stock market when it claimed it would deliver a strong financial result in 2023, months before declaring a $31.7 million loss. Justice Ashley Black on Tuesday ruled the Australian Securities and Investments Commission had proven the allegations against Rex and former executive chairman Lim Kim Hai. But he found ASIC did not prove its case against three former non-executive directors - former chair John Sharp and directors Lincoln Pan and Siddharth Khotkar. It did not stop the watchdog claiming victory, arguing the cash-strapped carrier had been held to account. "Continuous disclosure is a core obligation for listed entities and underpins Australia's corporate governance framework," ASIC chair Sarah Court said. "It is critical investors have access to accurate and timely information that would impact their investment decisions." On February 28, 2023, the airline released a stateme…

ASIC sues Rex and four directors for serious governance failures Print Share Twitter Facebook LinkedIn Email ASIC has commenced legal proceedings in the Supreme Court of NSW seeking leave to allege Regional Express Holdings Limited (administrators appointed) (Rex) engaged in misleading and deceptive conduct and contraventions of continuous disclosure obligations. ASIC will also allege former executive chair Lim Kim Hai (Mr Lim) was involved in Rex’s continuous disclosure breach and that Mr Lim, along with The Hon John Sharp AM, Lincoln Pan and Siddharth Khotkar, contravened their directors’ duties. ASIC will allege Rex released a misleading ASX announcement on 28 February 2023 stating Rex was ‘optimistic the Group will have positive operating profits for the full FY23 barring any further external shocks’. ASIC will allege that Rex did not have a reasonable basis for that claim for a number of reasons, including because it had incurred operating losses in the financial year to date, and it did not prepare a financial forecast for FY23 before issuing the announcement. ASIC will contend Rex breached its continuous disclosure obligations by failing to disclose a material downgrade, de…

ASIC Sues Rex for Governance Failures: Directors Under Fire ASIC Sues Rex for Governance Failures: Directors Under Fire Posted by Michelle Warner | Dec 12, 2024 | Headline News , Aviation , Business News | 0 | Spread the love Post Views: 88 The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings in the Supreme Court of New South Wales against Regional Express Holdings Limited (Rex) and four of its directors, accusing them of severe governance breaches. This high-profile case addresses allegations of misleading conduct and violations of continuous disclosure obligations, signalling ASIC’s commitment to holding corporate leaders accountable. ASIC’s legal action targets Rex’s former executive chair, Lim Kim Hai, alongside directors The Hon John Sharp AM, Lincoln Pan, and Siddharth Khotkar. The allegations stem from what ASIC claims was a misleading ASX announcement made on February 28, 2023, asserting that Rex was “optimistic the Group will have positive operating profits for the full FY23 barring any further external shocks.” Misleading Financial Claims: Key Allegations According to ASIC, Rex did not have a reasonable basis for its February 28 ann…

Rex and directors sued after 'optimistic' profit claims Embattled Rex Airlines will receive another $50 million in assistance from the federal government.Photo: AAP The corporate regulator is suing embattled airline Rex and four directors for alleged breaches of continuous disclosure obligations. The Australian Securities and Investments Commission alleges that, after being “optimistic” about recording a profit while amassing millions in monthly losses, Rex failed to reveal it expected a $35 million shortfall until days before the financial year ended. It accuses the regional airline of deceptive conduct, with ASIC also attempting to have directors disqualified for allegedly contravening their duties. “Our case will allege serious governance failures at Rex,” commission chair John Longo said on Wednesday. “Rex’s directors had a responsibility to take reasonable steps to ensure the company complied with the law and we will seek to hold them to account. “We will allege four of Rex’s directors breached their duties because they failed to take steps to ensure the market had accurate information about the company’s financial performance.” The airline and four directors, includin…

Australian court finds collapsed airline Rex breached market disclosure laws June 30 (Reuters) – Australia’s securities regulator said on Tuesday that a New South Wales court found that formerly listed airline ​Regional Express Holdings (Rex) breached its disclosure ‌obligations tied to a February 2023 profit forecast. Here are a few details: • Rex had said in its February 2023 announcement that it was “optimistic the Group will ‌have ​positive operating profits for the ⁠full FY23, barring any ⁠further external shocks.” • The Supreme Court of New South Wales found that the company did not have reasonable grounds to expect ​that the Rex Group would have those positive operating profits from 14 April 2023 ⁠onward, the Australian Securities and ⁠Investments Commission (ASIC) said. • Rex did ​not immediately respond to a Reuters request for ​comments. • The collapsed airline was bought out by ‌U.S. aviation services provider Air T in 2025, a year after it entered voluntary administration. • The Australian corporate regulator added that the ⁠decision comes weeks after former Rex executive chair Lim Kim Hai admitted to allegations of director duties ⁠breaches and ‌involvement in the com…

A regional airline breached core obligations when boasting profits were on the way before posting an eight-figure loss, says the watchdog which successfully pursued it in court. The NSW Supreme Court found embattled regional carrier Rex misled the stock market when it claimed it would deliver a strong financial result in 2023, months before declaring a $31.7 million loss. Justice Ashley Black on Tuesday ruled the Australian Securities and Investments Commission had proven the allegations against Rex and former executive chairman Lim Kim Hai. But he found ASIC did not prove its case against three former non-executive directors - former chair John Sharp and directors Lincoln Pan and Siddharth Khotkar. It did not stop the watchdog claiming victory, arguing the cash-strapped carrier had been held to account. "Continuous disclosure is a core obligation for listed entities and underpins Australia's corporate governance framework," ASIC chair Sarah Court said. "It is critical investors have access to accurate and timely information that would impact their investment decisions." On February 28, 2023, the airline released a statement to the market saying it was optimistic the company…