ASIC suing Rex Airlines over ‘serious governance failures’
Corporate regulator, ASIC, is suing beleaguered regional airline, Rex, alleging that four of its directors are guilty of “deceptive and misleading conduct” regarding profit projections.
The watchdog has alleged that Rex – as well as board members John Sharp, Lim Kim Hai, Lincoln Pan and Sid Khotkar – did not adequately disclose projections that it would suffer a $35 million operating loss for FY23 when it issued an ASX update in February 2023, instead forecasting profits, telling the market the airline was “optimistic the Group will have positive operating profits for the full FY23 barring any further external shocks”.
The regulator claims this projection was made “despite being aware when it issued the February ASX announcement that the company was unlikely to achieve an operating profit”.
