MinRes bins succession plans, Ellison retains power
Amid ongoing scrutiny, Chris Ellison will not be relinquishing his hold on Mineral Resources (ASX: MIN) despite promises to do so by mid-2026.
Mr Ellison has been at the centre of multiple regulatory probes from the Australian Taxation Office (ATO) and Australian Securities and Investment Commission (ASIC) — one of which investigated his misuse of company resources and alleged role in a tax evasion scheme involving British Virgin Islands-based entities.
At MinRes’ 2024 annual meeting, Mr Ellison apologised to shareholders after confessing to his role in the alleged offshore tax scheme at their expense.
“I can’t stress how much I hate what I’ve done. It’s a dark cloud in my life that I’ll live with forever,” he said.
He was fined $8.8m by the company and forfeited his salary, amongst other incentives, valued up to $9.6m, before making a commitment to step down from his role.
MinRes’ independent internal investigation showed the company had made two payments totalling close to $3.8m to an offshore account associated with Mr Ellison — an amount he agreed to repay.
In an effort of transparency with shareholders, the MinRes board publicised a list of transactions where the misconduct occurred.
Following the scandal, MinRes announced it would be exiting dealings with bodies linked to Mr Ellison and commenced the search for his successor. The company told shareholders it would take between 12 and 18 months for the leadership transition process to finalise.
At the MinRes annual general meeting this week, chairman Malcolm Bundey told shareholders the handover from Mr Ellison had been scrapped.
“[We] could not confidently deliver the intended outcomes of a smooth transition without creating unnecessary risk for the company and its shareholders,” he said.
Mr Bundey stressed that transitioning from a founder-led model required a significantly broader and more rigorous process — one that should not be treated as a single day event.
“It is not about simply searching for and naming a successor — it is about identifying the right person but also putting in place the organisational structures, resources and support to ensure they will succeed,” he said.
The day prior to the company’s AGM, MinRes released an updated securities trading policy. The highlight of the update is the self-imposed “front page test”, which requires personnel to ask themselves “how would it look if the transaction were reported on the front page of the newspaper?”.
Though it appears Mr Ellison may not have learnt the first time, the board at MinRes seems to be grasping the importance of public confidence.
Mr Ellison has been on the ATO’s watchlist since an initial investigation in 2007, just a year after MinRes made its ASX debut, when the corporate body began reviewing Mr Ellison’s personal tax returns from as far back as 2004.
Earlier this year, MinRes investors filed a class action against the company and Mr Ellison to the Victorian Supreme Court relating to the alleged tax scandal. The ATO’s most recent probe is investigating how Mr Ellison calculated income and fringe tax benefits.
Prior to Mr Ellison’s corporate governance failings being publicised in late 2024, MinRes shares were trading at about $45.86 before dropping sharply to lows of about $23.78 by early this year.
MinRes, currently sitting at a market capitalisation of $9.65b, reported a $900m loss in FY25 and a net debt of about $5.3b.