Chris Ellison, the managing director of Mineral Resources (MinRes), is set to resign within the next 18 months following a significant investigation that revealed he misused company resources for personal gain.

On November 4, 2024, MinRes disclosed Ellison's resignation timeline, potential financial penalties totaling nearly $9 million, and the resignation of chairman James McClements.

The investigation uncovered significant governance and management shortcomings within the company, prompting the need for leadership changes.

The board's decision to enforce these changes was influenced by the need for improved governance in light of Ellison's misconduct and the unique circumstances surrounding the company's growth.

The investigation revealed a scheme initiated in 2003, where Ellison and four executives acquired mining equipment through offshore entities, profiting from undisclosed revenue until a voluntary disclosure was made in 2021.

Ellison publicly expressed deep remorse for his actions, acknowledging the mistakes driven by personal embarrassment and pledging to regain the trust of investors and the MinRes team.

These governance failures have drawn comparisons to other corporate scandals, highlighting the influence of founders on corporate behavior.

Ellison faces additional financial repercussions, including approximately $9.6 million in lost remuneration due to his actions.

Despite the investigation's findings, MinRes's board noted that the financial impact on the company was not detrimental, and they have since strengthened controls on related party transactions.

The Australian Securities and Investments Commission is expected to conduct further investigations, which may lead to legal actions against those involved.

The probe also revealed that Ellison directed employees to work on his personal properties and provided financial benefits to related parties, further complicating the governance issues.

Following the revelations, MinRes's share price dropped nearly 10%, reflecting investor concerns over the company's governance and leadership integrity.