It will be difficult for XPD to be able to meet all requirements...

It will be difficult for XPD to be able to meet all requirements stipulated by the ASX by the new due date.

What would attract other Australian based directors to join the board with the threat of legal action overhanging the company and directors?

If the company is delisted from the ASX the local Australian shareholders will lose any protection.. the Chinese shareholders effectively will end up with control over the business and cashflow of XPD. Those who should be penalised end up winning..