Chris Ellison has paid the $3.8 million penalty handed down in the fallout from his tax evasion scandal as Mineral Resources’ search for a new chairman draws out until June.
Chris Ellison has paid the $3.8 million penalty handed down in the fallout from his tax evasion scandal as Mineral Resources’ search for a new chairman draws out until June.
The embattled miner told the market a chairman selection process was “well-advanced” after current chair James McClements declared he would step down before the company’s next annual general meeting following the series of governance failures.
MinRes also reiterated Mr Ellison was set to depart the company he founded three decades ago after revelations of his offshore tax affairs and corporate governance issues came to light, savaging the company’s share price in the process.
The company said it wouldn’t be securing a new managing director until the new chairman was brought on board, tipped to occur in the June quarter.
The iron ore and lithium producer said it wouldn’t be passing on any further penalties to the managing director, who also forfeited millions of dollars’ worth of incentives taking his total financial hit to about $18 million, not including Mr Ellison's confidential settlement with the tax office.
MinRes said the board had not “identified additional information that changed its conclusions and decisions”.
“Mr Ellison has given assurances to the board that he never intended to obtain personal gain at the expense of the company and its shareholders,” MinRes told the market.
MinRes also told the market it had implemented policies to strengthen its corporate finance, such as new protocols around managing related party transactions and disclosing and tracking conflicts of interest.
The company said it was also exiting legacy related party transactions, expect for when the deals offered “compelling commercial benefit” and has moved to block key management personnel for using company resources.
It comes after MinRes used a shipping agency owned by Mr Ellison’s daughter and had previously provided “rent relief” to her business, which has since been repaid.
It also emerged Mr Ellison used company resources for personal gain, such as instructing staff to work on his boat, properties and manage his personal finances.
The damming report handed down by the board in November stated Mr Ellison failed to be as forthcoming as he should have been and that he did not act with integrity.
