The corporate regulator ASIC is suing Rex Airlines, alleging the company and four of its directors engaged in “deceptive and misleading conduct” over its profitability.
ASIC alleges Rex, along with John Sharp, Lim Kim Hai, Lincoln Pan and Sid Khotkar, failed to meet its disclosure obligations, including as company directors, by not sharing market sensitive information that forecast a $35 million profit downgrade in June 2023 in a timely manner.
“Our case will allege serious governance failures at Rex”, ASIC chair Joe Longo said.
“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.”
Rex Airlines entered voluntary administration in July this year.
In a statement, the company’s administrators from EY said it would be inappropriate to comment as the matter is before the courts.
Loading
