Chris Ellison, the managing director and founder of Mineral Resources Ltd., told shareholders that he deeply regretted actions that have been revealed in recent weeks, including not paying personal tax.
“I can’t stress enough how much I hate what I’ve done,” Ellison said at the company’s annual general meeting in Perth on Thursday. “I deeply regret the impact this has had on the business and our people.”
Ellison and the board have been under pressure to explain why the company made historic payments to offshore entities controlled by Ellison. He has pledged to step aside within 18 months but will remain as managing director until a successor is found.
Chairman James McClements told the meeting that while Ellison had lacked judgment and integrity, he backed the managing director to remain in the role until a replacement is found. The board was working to strengthen conflict-of-interest procedures, he added.
In a sign of investor unease about recent events, shareholders rejected the miner’s remuneration report in a proxy vote at the AGM. While that result is not binding, it does have implications for next year’s annual meeting.
Under Australia’s so-called “two-strikes rule”, intended to empower minority shareholders, if 25% or more votes cast at an AGM are against a company’s remuneration report two years in a row, that triggers a vote on board dismissal.
McClements said the rejection of the remuneration report was “obviously disappointing and we understand there are a variety of factors” influencing shareholders.
(By Paul-Alain Hunt and Martin Ritchie)
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