Governance
ASIC releases misconduct report and enforcement outcome data. On 25 February 2026, ASIC released key data relating to reports of misconduct received and outcomes of its enforcement actions for 1 July to 31 December 2025. ASIC receives confidential reports from members of the public via its website and uses this data to identify systemic issues. During the relevant period, ASIC received 9,686 misconduct reports, with 40% of reports related to corporations and corporate governance. Key issues arising from these reports included governance concerns, reporting and other shareholder-related matters, and alleged fraud. During the relevant period, ASIC took enforcement action against 69 parties in relation to corporate governance misconduct (including breaches of directors’ duties), and as at 2 January 2026, 27 criminal and eight civil proceedings relevant to its corporate governance enforcement outcomes remained in progress. The data reflect a sustained focus by both ASIC and investors on corporate governance issues, highlighting the need for directors to remain vigilant in their oversight role and governance responsibilities.
Regulatory
ASX clarifies good fame and character assessment for listing applicants’ officers. On 26 February 2026, ASX issued a compliance update regarding ASX Listing Rule 1.1 condition 20, which requires an applicant for a full listing to satisfy ASX that each of its directors, its Chief Executive Officer and its Chief Financial Officer are of good fame and character. Where an officer has been involved in conduct that may influence ASX’s assessment of their good fame and character, the update clarifies that ASX will consider factors including the nature of, duration of, and time since the relevant conduct and any enforcement outcome, whether the conduct was self-identified or identified by a regulator, whether the officer admitted fault or expressed contrition, matters subsequent to the enforcement outcome (such as any character assessment processes, or roles occupied on listed company boards), and any character references provided from reputable persons. Directors should keep in mind that ASX encourages listing applicants to be proactive with their disclosure and may require submissions that are made to the regulator regarding an officer’s good fame and character to be replicated in a listing prospectus.
Legal
Takeovers Panel publishes reasons for its decision not to conduct proceedings in relation to the affairs of Wiluna. On 26 February 2026, the Panel published its reasons for declining to conduct proceedings in relation to the affairs of Wiluna (which was formerly subject to a deed of company arrangement). On 18 December 2025, the Panel announced that it had received an application from AIM Mining Corporation Limited (Applicant) seeking a declaration of unacceptable circumstances in relation to the issue of convertible notes by Wiluna to certain shareholders, which the Applicant alleged were associates. The Panel considered that there was no reasonable prospect that it would declare the circumstances unacceptable, primarily because the Applicant did not provide a sufficient body of material to discharge the evidentiary threshold. Key findings of the Panel included that:
the Applicant’s submission that certain parties shared a common purpose relied on implied or assumed motivations rather than demonstrable acts;
a similarity of commercial terms in funding agreements does not, without more, establish association; and
the deed administrators' engagement with certain major stakeholders did not provide any basis for a finding of association.
The Panel also considered its jurisdiction given that Wiluna was (at the time of the application) subject to a deed of company arrangement and concluded that evidence that Wiluna shares retained meaningful economic value and the nature of the alleged control effects enlivened the purposes of Chapter 6 of the Corporations Act 2001 (Cth).
Risk Radar
Renewed conflict in the Middle East ignites inflation fears as oil prices surge. On 3 March 2026, Reserve Bank of Australia Governor, Ms Michele Bullock, addressed the potential economic effects of renewed conflict in the Middle East, signalling that any prolonged supply shock may push inflation expectations higher and prompt a monetary policy response (noting that Australia's headline inflation is 3.8% in the year to January 2026). Escalating geopolitical tensions in the Middle East are causing significant volatility in global oil markets, with energy-dependent market economies and global supply chains hit hard. The Strait of Hormuz accounts for approximately 30% of seaborne oil trade and one-fifth of global gas shipments and its closure could trigger unprecedented global energy disruption. Australian companies, particularly significant energy consumers, are likely to face higher input costs, placing pressure on margins and operating expenses. Companies seeking to raise capital should also be aware that underwriting arrangements typically include termination or repricing provisions that may be triggered by a major escalation in hostilities in specified jurisdictions.