Australia's HESTA places MinRes on watchlist over governance woes (updated)

Woodside Energy

07/11/2024 23:10

(Adds more details and background from paragraphs 2 onwards)
       Nov 8 (Reuters) - Australian superannuation fund HESTA
said on Friday it has placed Mineral Resources  MIN.AX  on its
watchlist, citing disappointment with the company's inadequate
response to governance issues involving billionaire founder
Chris Ellison. 
    Earlier this week, the diversified miner said its founder
and managing director, Chris Ellison, would exit the company
within 18 months after an internal probe found him guilty of
evading taxes and using company resources for his personal
benefit.
    "Our concerns include that the managing director's
succession timeframe does not reflect the seriousness of the
issues and that the issues identified indicate a systemic
failure of governance at the senior management and board level,"
HESTA said in a statement.
    As of Oct. 24, HESTA's portfolio exposure to MinRes stood at
0.83%, the fund confirmed to Reuters earlier this week.
    HESTA said it subjects watchlisted companies to increased
monitoring and direct engagement, with an escalation framework
that may involve voting against directors, supporting or filing
shareholder resolutions and potentially divesting.
    These measures are enacted when HESTA finds insufficient
progress in risk mitigation and deems such actions to be in the
best financial interests of its members.
    "Alongside MinRes, Woodside and Santos remain HESTA
watchlist companies," it said.
     

(Reporting by Sherin Sunny in Bengaluru; editing by Alan Barona)
((mailto:Sherin.Sunny@thomsonreuters.com))