An emotional Chris Ellison said an investigation into a major corporate governance scandal affecting the mining company he founded nearly 20 years ago constitutes a “dark cloud over (his) life” and is something he will “live with forever”.

Mineral Resources’ long-awaited annual general meeting was held in Perth’s south-east on Thursday morning, the first since mining magnate boss Mr Ellison announced his resignation over alleged tax evasion.

Disgruntled Mineral Resources shareholders expressed their anger over the affair, with one telling journalists waiting outside the meeting that he felt like “throwing a punch”.

Mr Ellison addressed the cohort, speaking about his “error in judgement” and how he “deeply regrets” the impact his behavior has had on the business.

“I hate what I did,” he said.

Just before the meeting, Mr Ellison issued a statement to the ASX saying he had made mistakes but took “full responsibility” for them.

“I made an error in judgment in filing personal income tax. I deeply regret the impact this has had on our business and our employees,” he said.

“Looking back, I accept that things could and should have been done differently when it comes to corporate governance, but these measures are now in place.

‘Chris lacked judgment’: president

The meeting began with Mineral Resources Chairman James McClements acknowledging that the past few months had been “difficult” and “getting to the facts was not easy.”

He said the board accepted there was no intention to cause harm to shareholders and Mr Ellison had repaid the company “in a timely manner”.

Mr McClements ended his speech by explaining how MinRes planned to rebuild and focus on governance by “working ethically”.

He also reiterated that he would step down as president within the next 12 to 18 months.

Shareholders demand answers

One shareholder asked why several of Mr Ellison’s financial transactions were not shared with him, to which Mr McClements responded that the transactions were “not as robust as they should have been”.

Mr McClements also defended the board’s decision to give Mr Ellison up to 18 months to step down.

“A sudden departure was not in the best interest of the company,” he said.

A question was then asked regarding the issue of governance and how it was brought to the attention of shareholders “through the media” and why they “were not informed”.

Mr. McClements said reports about the problem came out when they were already investigating and were reported differently from how the board saw it.

Another question was whether the company expected a “class action” from shareholders who had purchased shares before the downturn caused by the findings.

Mr McClements said none had been received.

One question indicated how much a shareholder thought the company would be better off if Mr Ellison stayed in his job and that he “deserved another chance” – which was met with lots of applause in the room.

High priority tax issue

Following an investigation ordered by the company, it was revealed that Mr Ellison had failed to disclose that he had a financial interest in one of the British Virgin Islands companies from which a subsidiary of Mineral Resources had purchased for nearly of $4 million worth of mining equipment in the early 2000s.

However, the company said it had voluntarily disclosed the BVI company’s income to the Australian Tax Office in 2021 and as of May 2023 had paid the ATO almost $4 million in unpaid tax.

Investigations into Mr Ellison’s other financial affairs also revealed that he misused company resources for his personal gain.

The board determined that the mining magnate would have up to 18 months to step down while he searched for a new successor – but some shareholders weren’t as convinced by that deadline.

The board of directors also decided not to pay him nearly $10 million in planned executive compensation and ordered him to pay nearly $9 million in fines.

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