Overview
- The NSW Supreme Court ruled on Tuesday that Rex contravened continuous disclosure rules and misled investors about its 2023 profit outlook.
- Former executive chair Lim Kim Hai has admitted the contraventions and accepted he should face pecuniary penalties and disqualification orders.
- The court cleared three former non‑executive directors — John Sharp, Lincoln Pan and Siddharth Khotkar — finding ASIC did not prove breaches against them.
- Rex had told the market on February 28, 2023 that it expected positive operating profits but did not correct that guidance until June 20, when it forecast about a $35 million loss.
- The ruling comes after Rex entered administration in July 2024 with roughly $500 million of debt, received federal financial support and was later sold to US buyer Air T, and it will test how strictly regulators can pursue penalties for failures to tell investors timely material information.