ASIC is seeking leave to appeal the decision of the Supreme Court of NSW that former Regional Express Holdings Limited (Rex) non-executive directors The Hon John Sharp AM, Siddharth Khotkar and Lincoln Pan did not contravene their directors’ duties in relation to a profit forecast made by Rex on 28 February 2023.

ASIC commenced proceedings against Rex and the three directors, as well as former chief executive officer and executive chairman Lim Kim Hai, in December 2024 (24-271MR).

On 30 June 2026, the Court found that Rex breached its continuous disclosure obligations in relation to the forecast from 14 April 2023. However, the Court did not find that Mr Sharp, Mr Khotkar and Mr Pan breached their directors’ duties, or that Rex engaged in misleading conduct (26-140MR).

ASIC is appealing the Court’s decision regarding the non-executive directors because it is concerned that there were errors in the primary judge’s findings.

ASIC is not appealing the Court’s decision in relation to Rex.

The leave to appeal will be determined by the Court on a date to be decided.

Background

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.

On 20 October 2026, the Supreme Court of NSW ordered that former chief executive officer and executive chairman Lim Kim Hai be disqualified for 4 years and pay a pecuniary penalty of $800,000 after he admitted his involvement in Rex’s continuous disclosure breaches and to breaching his directors’ duties (26-250 MR).