Australian superannuation fund HESTA announced on Friday that it has placed Mineral Resources on its watchlist, expressing concerns over the company’s inadequate response to governance issues involving billionaire founder Chris Ellison.
Earlier this week, the diversified miner revealed that Ellison, its founder and managing director, would step down within 18 months after an internal investigation found him guilty of tax evasion and misusing company resources for personal gain.
“Our concerns include the fact that the managing director’s departure timeline does not reflect the severity of the issues, and that the problems identified suggest a systemic failure of governance at both the senior management and board levels,” HESTA said in a statement.
As of October 24, HESTA’s portfolio exposure to Mineral Resources stood at 0.83%, the fund confirmed to Reuters earlier this week.
HESTA stated that it monitors watchlisted companies more closely, engaging directly with them and applying an escalation framework that could include voting against directors, supporting or filing shareholder resolutions, and potentially divesting if insufficient progress is made in mitigating risks.
“Alongside Mineral Resources, Woodside and Santos are also on HESTA’s watchlist,” the fund added.
