In this edition, we discuss the Australian Competition and Consumer Commission’s (ACCC) new guidance for consumer-facing emissions claims and cover an exposure draft of regulations to raise the monetary thresholds for defining a large proprietary company. We also examine the disqualification of the former chief executive of Regional Express Holdings Limited (Rex) from managing corporations for continuous disclosure and directors’ duties contraventions.
In Over the Horizon, we look at what growing competitive pressure on ASX Limited (ASX) could mean for the Australian Securities Exchange.
Governance
ACCC sets expectations for consumer-facing emissions claims.
On 20 October 2026, the ACCC released new guidance, Making emissions claims to consumers – a guide for business, to help businesses make accurate and credible emissions claims and avoid greenwashing. The guidance directs businesses to use credible, science-based accounting standards and to be open about their use of purchased credits. Centrally, the guidance asks businesses to consider the dominant message an average consumer would take away. Businesses should avoid broad or highly selective claims and “double counting” and should only make claims about the future where they have reasonable grounds to do so. Where marketing suggests that carbon credits are equivalent to direct emissions reductions, or cancel emissions out, the business must have a reasonable basis for that claim. Greenwashing remains an ACCC compliance and enforcement priority, and false or misleading environmental claims risk breaching the Australian Consumer Law. Directors should ask management to review their organisation’s consumer-facing emissions claims against the guidance. Where a claim raises concerns, directors should ensure the messaging is updated, supported by stronger evidence or withdrawn.
Regulatory
Consultation opens on doubling the ‘large proprietary company’ monetary reporting thresholds from FY2027–2028.
On 19 October 2026, the Commonwealth Treasury released an exposure draft of Corporations Amendment (Proprietary Company Thresholds) Regulations 2026. The proposed regulations would raise the monetary thresholds determining whether a proprietary company is ‘large’. Since 2019, a proprietary company that satisfies two of the following criteria: consolidated revenue of $50 million or more, consolidated gross assets of $25 million or more and 100 employees or more, has been a large proprietary company. For financial years commencing on or after 1 July 2027, it is proposed that the consolidated revenue threshold would rise to $100 million and the consolidated gross assets threshold to $50 million. Large proprietary companies are required to prepare annual audited financial, directors’ and sustainability reports, and the Commonwealth Treasurer has indicated that the proposed amendments would save business over $210 million in compliance costs. Until the regulations are made, the current financial and sustainability reporting obligations continue to apply. Directors should therefore not scale back reporting preparations and may wish to make a submission before consultation closes on 2 November 2026.
Legal
Former Rex chief executive disqualified for four years and fined over misleading profit forecast.
On 20 October 2026, the NSW Supreme Court disqualified Mr Lim Kim Hai, Rex’s former chief executive officer and executive chair, from managing corporations for four years and ordered him to pay an $800,000 penalty for breaching his directors’ duties and for his involvement in Rex’s continuous disclosure breaches. On 20 May 2026, Mr Lim admitted that Rex had no reasonable grounds for its 28 February 2023 ASX announcement forecasting positive operating profits for the 2023 financial year. He also admitted that, from 28 February 2023, Rex should have disclosed that it had no reasonable basis for its profit forecast, but did not do so until 20 June 2023, when it forecast a $35 million operational loss. Justice Black accepted the penalty agreed between ASIC and Mr Lim, noting that the contraventions were serious and that Mr Lim held a senior role, while three non-executive directors were found to have not breached their duties. On 23 October 2026, ASIC sought leave to appeal the decision in respect of Rex’s non-executive directors. The contraventions by Rex arose where one executive held the roles of chief executive officer, executive chair and disclosure officer, and received detailed financial information that was not brought to the board’s attention between quarterly meetings. Examples of how boards may mitigate this risk include the separation of the chair and chief executive roles, requiring independent sign-off on market guidance, giving all directors regular management accounts and setting triggers for prompt reporting where results depart from published guidance.
Over the horizon
ASX signals strategic response as global competition reshapes capital markets.
On 22 October 2026, ASX’s Chair and recently appointed Chief Executive Officer, Mr David Clarke and Mr Anthony Attia, outlined how ASX plans to respond to growing competition across its business. Mr Attia noted that markets worldwide are extending access, adopting new technology and developing new products. In addition to global exchanges, the ASX is also competing with clearing houses, technology companies, data platforms and private markets. Mr Clarke said the exchange industry has changed markedly over the last 18 months, as new technologies and ways of trading are now being put into practice around the world. Mr Attia also noted that global trends may change how markets operate, including moves towards 24-hour trading and the tokenisation of certain assets. Capital Brief reported that Mr Attia referred to internal discussions with ASX to consider longer share market trading hours and longer overnight trading in interest rate futures. These changes could open new opportunities for how Australian companies raise capital and how their shares are traded. Directors of listed companies should monitor news for the announcement of ASX’s new strategy, which is due in the first half of 2027.