Pilotcenter.net News reports that the Australian Securities and Investments Commission (ASIC) has taken legal action against Rex Airlines, accusing the airline of misleading conduct and failing to meet disclosure requirements. ASIC Chair Joe Longo stated that four board directors, Lim Kim Hai, John Sharp AM, Lincoln Pan, and Siddharth Khotkar, allegedly did not ensure accurate financial information was provided to the market. The accusations stem from a misleading announcement made by Rex on the Australian Securities Exchange (ASX) in 2023, claiming positive operating profits without a reasonable basis.

ASIC claims that Rex's directors failed to disclose important financial information, leading to a later announcement of a significant operating loss. Longo emphasized the responsibility of directors to ensure compliance with the law and stated that ASIC will hold them accountable. The regulator intends to pursue declarations of contravention and disqualification orders against the directors, highlighting the importance of upholding continuous disclosure obligations.

The case serves as a reminder of the crucial role directors play in ensuring companies comply with their disclosure obligations. ASIC's actions underscore the need for transparency and accountability in the corporate sector, demonstrating that misleading conduct will not be tolerated. Stay tuned for updates on this developing regulatory matter.