Lim Kim Hai, the former executive chairman of Australian regional airline Regional Express (Rex), has been fined A$800,000 (about US $560,000) and banned from managing companies for four years after admitting that he misled investors about the carrier’s finances.
The New South Wales Supreme Court imposed the penalties on October 20, 2026.
Lim was also ordered to pay AU 150,000 (about $105,000) of the legal costs of the Australian Securities and Investments Commission (ASIC), which brought the case, according to the Australian Financial Review.
Rex said it was “optimistic” about a profit while heading for a loss
The case centered on a market update Rex issued in February 2023, in which the airline claimed to be “optimistic” about making a full-year profit.
According to ASIC, Rex had recorded operating losses for the financial year to that point and had not prepared a financial forecast for 2022–23 before making the statement. The airline later forecast an AU 35 million (about US $24.5 million) loss for the year and ultimately reported a loss of AU 31.7 million (about US $22.2 million).
Lim, who was once Rex’s largest shareholder, admitted in May 2026, during the first week of the civil trial, that the announcement was misleading and that he had breached his continuous disclosure obligations and directors’ duties. He also agreed to the penalties with ASIC.
Judge says a heavier penalty could have applied
Even though the two sides had agreed on a penalty, the court still had to be satisfied that it fell within an appropriate range. Justice Ashley Black said the circumstances could have supported a tougher punishment.
“I bear in mind that the relevant contraventions were, as Mr Lim admits, serious; and that Mr Lim was a senior executive of Rex at the time they occurred,” he wrote.
He added that, given the agreement between the parties, a four-year disqualification and an AU $800,000 penalty were “within an appropriate range”.
ASIC Chair Sarah Court suggested that the case demonstrates the importance of accurate company disclosures. “Directors play a critical role in upholding the integrity of our financial system by keeping public markets informed,” she said, adding that investors need accurate and timely information in order to make decisions.
Three other former directors cleared
ASIC’s case also targeted three other former Rex directors, namely John Sharp, a former federal minister and Nationals MP who was deputy chairman at the time, along with Siddharth Khotkar and Lincoln Pan.
In June 2026, Justice Black ruled in favor of the three men, finding that ASIC had not proven its case against them, despite Lim’s admission.
Rex, which operated regional services across Australia – and, for a time, flights between major cities – collapsed in mid-2024 and entered voluntary administration under EY. The airline was sold to US-based company Air T in late 2025.