MinRes shares rally on 'inconsistencies' in Ellison’s alleged tax evasion scheme
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More news: Shares in Mineral Resources rallied on the ASX after the the mining group said it was progressing its investigation into the involvement of its managing director and founder Chris Ellison in an alleged tax evasion scheme.
MinRes shares were up 2.5% to $34.98 by 2:10pm AEDT, having shed nearly 25% since media reports of Ellison's involvement in the tax evasion scheme emerged a week ago.
MinRes set to respond to Chris Ellison tax evasion claims
The news: Mineral Resources said that its investigation into the involvement of its managing director and founder Chris Ellison in an alleged tax evasion scheme has "evolved to respond to statements that do not accord with the company's understanding of the facts".
The context: MinRes said that it is working to resolve these "inconsistencies", recognising some matters reported by the media date to before the company's formation and ASX listing in 2006.
The company said that international law firm Herbert Smith Freehills has been engaged "for some time" to assist the board and investigate certain allegations concerning Ellison that have emerged over time.
MinRes said it has received questions on these issues from the ASX and intends to release its responses to the market shortly. The company's board also intends to issue an announcement to the market "regarding the conclusions it has reached and the actions it will take" by 4 November.
MinRes shares slumped last week after its billionaire founder Ellison admitted to involvement in an alleged tax evasion scheme involving offshore companies.
What they said: "The board's response is driven by high governance principles and the best interests of MinRes shareholders, now and in the long term," said MinRes chair James McClements.
"We are determined to ensure that this is the path for MinRes long into the future and we understand our role as a board is to strike the appropriate balance of all factors so this is delivered for our investors."
The source: ASX announcement
