iscover
The Australian Federal Police (AFP) has reportedly been called in over claims of illegal recording at Rex’s final board meeting before it entered administration.
Former Rex executive chairman Lim Kim Hai allegedly recorded the meeting at the end of July, at which the board voted to appoint EY as administrators, without the consent of those present, according to reports in The Australian and The Australian Financial Review.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
“The AFP received a report of crime on 12 August 2024,” an AFP spokesperson told Australian Aviation. “No further comment will be made at this stage.”
The Australian reported that Rex chairman John Sharp filed the complaint after Lim allegedly offered to hand the recording, of which the board members are believed to have been made aware at the meeting, over to a journalist.
Lim told the Financial Review that police had not interviewed him about the Microsoft Teams meeting, which he attended remotely from Singapore.
“I said to the board that I will have a record of the transcript of what the directors said at the board meeting and will in good time pursue legal recourse for the directors failing to perform their fiduciary duties,” he said.
The allegations follow weeks of reported infighting among Rex’s directors, with Lim attempting to overthrow the board last month following his ouster as executive chairman in June. EY has asked the Federal Court to put a pause on the board spill while the airline remains in administration.
The Financial Review this month published documents and emails it says are from key Rex players including Lim and Sharp, revealing what it describes as an “all-out war at the company’s highest levels” between the two, including Sharp allegedly saying Lim “lives in a world where he is God”.
Additionally, Rex co-founder Michael Jones, who now oversees spaceport business Equatorial Launch Australia, revealed earlier in August that he had assembled a consortium to take over Rex in September, but claimed to have been knocked back by Lim.
Jones told The Australian the group were attracted to the prospect of growing Rex’s 737 capital city services.
“The Boeing 737s are where the upside for any investors would be, because there are structural and fundamental problems with the regional airline in relation to Saab serviceability,” he said.
“I called Lim and said there’s this consortium of guys, we’re fair dinkum, this is who we are, and who the investors are and we’re prepared to make an offer of twice the market cap or circa $160 million.
“He was basically rude, dismissive and not interested and said, ‘You’re not serious, I would only accept $300 million as a minimum and I’ve got three other parties who are prepared to pay that.’”
Rex and EY Australia could not comment.
[email protected]
says:EY are probably in the best position to judge but, on the evidence available there is only one reasonable direction for REX to now set course; – liquidation