MinRes shares rise on new governance changes
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More news: Shares in Mineral Resources gained after the mining group approved changes to governance processes and policies following tax evasion allegations against its managing director Chris Ellison.
MinRes shares were up 5.8% to $33.70 by 11:15am AEDT, having slumped more than 40% over the last 12 months.
MinRes moves to implement governance changes as Chris Ellison pays penalty
The news: Mineral Resources has approved changes to a range of governance processes and policies following tax evasion allegations against its managing director Chris Ellison.
The company also noted that Ellison had paid $3.8 million in financial penalties.
The context: The governance changes include:
- New protocols for managing related party transactions and an enhanced process for disclosing and tracking potential conflicts of interest;
- Exiting legacy-related party transactions between MinRes and its directors or senior executives, except those that offer compelling commercial benefit that would not otherwise be available; and
- Introduction of new or enhanced policies and processes:
- Eliminating the use of company resources by key management personnel
- Covering the disposal of company assets, including to key management personnel
- Governing investment decisions, including amending delegations of authority and board decision information papers, and;
- For managing whistleblower complaints.
In November, MinRes announced that Ellison would step down from his role within the next 12 to 18 months, following its investigation into tax evasion allegations. He would also incur financial penalties of $8.8 million and forego remuneration of up to $9.6 million.
The company also said it expected to announce a new board chair in the June quarter.
The source: ASX announcement
