The NSW Supreme Court has disqualified former Rex chief executive officer and executive chair Lim Kim Hai from managing corporations for four years and ordered him to pay a pecuniary penalty of $800,000 for his involvement in Rex’s continuous disclosure breaches and breaching his directors’ duties.
On 20 May 2026, Mr Lim admitted to all contraventions ASIC alleged against him, after ASIC took legal action against Rex, Mr Lim and three former Rex non-executive directors.
ASIC Chair Sarah Court said the outcome reinforced the importance of complying with disclosure obligations and ensuring the market receives an accurate picture of a company’s financial performance.
‘Directors play a critical role in upholding the integrity of our financial system by keeping public markets informed.’
‘Continuous disclosure is a core obligation for listed entities and underpins Australia’s corporate governance framework. It is critical that investors have access to accurate and timely information that would impact their investment decisions.’
In making his decision, Justice Black noted that the admitted contraventions were 'serious’ and that Mr Lim held a senior role.
Mr Lim was also ordered to pay a portion of ASIC’s legal costs.
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Background
Regional Express Holdings Limited (Rex) was listed on the Australian Securities Exchange from November 2005 to September 2025, although shares were suspended from trading when it entered voluntary administration on 30 July 2024.
It was bought by United States-based company Air T in December 2025, and its name was subsequently changed to Regional Express Holdings Pty Ltd.
ASIC sued Rex and four of its former directors on 11 December 2024, alleging serious governance failures (24-271MR).
On 20 May 2026, Mr Lim admitted to contravening his duty as a director under s 180(1) of the Corporations Act by failing to take reasonable steps to ensure that Rex complied with its obligations when making an ASX Announcement on 28 February 2023. In addition, Mr Lim admitted he was involved in Rex’s contraventions of its continuous disclosure obligations after that date under section 674A(3) of the Corporations Act.
ASIC was unsuccessful in its case against the former non-executive directors The Hon John Sharp AM, Siddharth Khotkar and Lincoln Pan for allegedly contravening their directors’ duties, and its alleged misleading conduct case against Rex (26-140MR).
On 20 August 2026, ASIC filed a Notice of Intention to Appeal the Court decision to dismiss part of its case (26-140MR).