ASX faces legal notice over Chess project

• Shareholder Rosheville notified ASX of its intent to file a Federal Court application for leave to commence a statutory derivative action.
• Following the disclosure, the ASX share price was down at $55.45.
• The legal action targets former officers and directors over duties connected to the previous CHESS replacement project.

A shareholder named Rosheville provided ASX (ASX:ASX) with notice that it proposes to file an application in the Federal Court of Australia to launch a statutory derivative action against certain former officers and directors.

The proposed legal proceedings relate to alleged breaches of directors' duties concerning the previous CHESS project rather than targeting the corporate entity itself.

The notice invokes sections 236 and 237 of the Corporations Act 2001 (Cth) to seek court approval for proceedings on behalf of the exchange operator.

Statutory derivative actions require applicants to satisfy specific criteria under the legislation, including demonstrating that the company will not bring the proceedings itself and that the action is in the best interests of the company.

Following the announcement, the ASX (ASX:ASX) share price was down at $55.45.

ASX operates financial markets, trading venues, and clearing and settlement facilities across the Australian financial ecosystem.