Originally Posted by
1A_Please
Unlikely to be jail time. The most likely outcome of a successful prosecution would be a large fine (this would end up being paid by whatever company did the Directors and Officers insurance for REX) and a directorial ban for a period (probably 5-10 years).
The court filing and press release are pretty clear on the scope of the prosecution and the penalties sought:
ASIC seeks leave to commence the proceedings against Rex as it is in administration. While ASIC will seek a declaration of contravention against Rex, it will not seek pecuniary penalties against the company.
ASIC will seek declarations, pecuniary penalties and disqualification orders against Mr Lim, The Hon Sharp AM, Mr Pan and Mr Khotkar.
https://asic.gov.au/about-asic/news-...e=betanewsroom
Unless they have the Lord Almighty as their D&O Insurer (I hear that LKH is on a first name basis with the big guy), none of the Gang of Four (Lim, Sharp, Pan, and Khotkar) will be covered. Insurers always look to limit their liability - there's a pretty much standard carve out whereby claims related to fraudulent or dishonest acts are excluded; same same for any claims relating to wilful violations or breaches of the law.
Those blokes will be on their Pat Malone for this one, and none too soon.