Regulatory Oversight Resolved but Star Minerals Faces Governance Scrutiny Ahead

Background to the Auditor Changes

Star Minerals Limited (ASX, SMS), a Western Australia-based minerals exploration company, has resolved a significant regulatory hurdle concerning its auditor transition earlier this year. The Supreme Court of Western Australia granted orders on 19 December 2025 that validate the resignation of the previous auditor, Elderton Audit Pty Ltd, effective 13 January 2025, and the appointment of Nexia Perth Audit Services Pty Ltd as the new auditor from 15 January 2025.

This judicial endorsement comes despite the company’s failure to comply fully with certain procedural requirements under the Corporations Act 2001, including the absence of shareholder approval for Nexia’s appointment at the 2025 Annual General Meeting. The court’s declaration effectively deems these procedural oversights rectified, shielding the company and its officers from related civil liabilities.

Implications for Share Issuance and Market Confidence

Alongside the auditor matters, the court also addressed the validity of several cleansing notices issued by Star Minerals between March and November 2025. These notices are critical for ensuring that shares issued during this period can be resold without breaching disclosure obligations under the Corporations Act.

The court confirmed that these cleansing notices were effective when given, thereby validating the on-sale of approximately 100 million shares issued across five dates in 2025. This ruling removes uncertainty around the legality of these transactions and restores confidence for investors and market participants.

Regulatory Compliance and Next Steps

The court’s orders also extend relief to Star Minerals and its directors from any civil liability arising from the non-compliance with specific sections of the Corporations Act related to auditor resignation, appointment, and cleansing notices. The company has committed to publishing the court orders on the ASX platform and serving them to relevant regulatory bodies, including ASIC.

Importantly, these developments have allowed Star Minerals to lift the voluntary suspension of its shares on the ASX, which had been in place since 17 December 2025. The market can now expect a return to normal trading activity, although the company remains under scrutiny to maintain strict compliance going forward.

Looking Ahead

While the court’s intervention has resolved immediate compliance issues, the company’s governance and procedural rigor will be closely watched. Investors will be keen to see how Star Minerals manages its regulatory obligations and whether the auditor transition impacts upcoming financial reporting.