ASX shareholder plans to seek court approval to sue former directors over CHESS project

ASX

12/08/2026 02:03

Aug 12 (Reuters) - ASX ASX.AX said on Wednesday a shareholder plans to seek court approval to bring a statutory derivative action against certain former officers and directors of the Australian securities exchange operator over its abandoned blockchain-based clearing and settlement project.
 
Here are some details: 
Shares of the bourse operator fell as much as 2.5% to A$55.68, posting their biggest intraday decline since July 3.
The shareholder, Rosherville, has alleged the officers and directors breached their duties in relation to the Clearing House Electronic Subregister System (CHESS) blockchain-based clearing and settlement project and wants to bring the case on behalf of ASX through a statutory derivative action, the company said. 
Under the Corporations Act 2001, a statutory derivative action allows an eligible shareholder or officer to bring legal proceedings on behalf of a company when the company itself is unlikely to do so.  
Court leave is required, and the proceedings are brought in the company's name for its benefit, generally.
ASX said there are no allegations against the exchange itself.
ASX said it will update the market on any further developments.
The CHESS replacement project, which was meant to modernise Australia's share settlement system, was paused in November 2022 after an independent review found significant issues with its design and delivery. 
ASX later abandoned the original blockchain-based approach and developed a new replacement plan.


 (Reporting by Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu)
 ((Roshan.Thomas@thomsonreuters.com;))