News
Rex Airlines found to have breached disclosure obligations by Australian court
July 1st 2026
An Australian court has found Rex Airlines breached continuous disclosure obligations when it failed to disclose the likelihood of a profit downgrade until months after the company first became aware of the state of its accounts. Read More » The legal proceedings were brought against Rex Airlines and four company directors Lim Kim Hai, John Sharp, Lincoln Pan and Sid Khotkar by the Australian Securities and Investments Commission (ASIC). The NSW Supreme Court judgment, handed down yesterday (June 30), said Rex investors were left to "proceed on a misleading basis that Rex continued to have reasonable grounds for optimism as to positive operating profits" for the 2022-23 financial after the company failed to correct that representation. Lim had previously admitted to the court he had breached his obligations. The court did not find Sharp, Pan and Khotkar breached their directors’ duties. It also did not find Rex, which collapsed into voluntary administration in 2024 and was eventually bought by U.S.-based Air T in December last year, engaged in misleading and deceptive conduct, as had been alleged by ASIC. "Continuous disclosure is a core obligation for listed entities and underpins Australia’s corporate governance framework," ASIC chair, Sarah Court, said in a statement. "It is critical that investors have access to accurate and timely information that would impact their investment decisions."
