ASX pair quit over US scandal
Mr Holliday-Smith's comments follow the exit on Thursday of Russell Aboud and Shane Finemore after their hedge fund Manikay Partners was caught up in a US regulatory sting.
The ASX chairman said the board had accepted their resignations "with regret".
"They made their decision after careful consideration of the best interests of the company," Mr Holliday-Smith said.
It is understood the two made the decision on their own to stand down from the ASX board.
"With regret, I have accepted their resignations. Mr Aboud and Mr Finemore have ... made significant contributions to the company. We wish them well."
Mr Aboud and Mr Finemore resigned from the ASX board on Thursday - just one week before the ASX's annual general meeting - after their US-based hedge fund was fined by US regulators following a nationwide investigation of illegal short-selling practices.
The US Securities Exchange Commission this week announced enforcement actions against some 23 US-based investment funds for improperly participating in public stock offerings after selling short those same stocks.
As part of the round-up, the SEC fined Manikay Partners $US2.5 million for short-selling of Citigroup shares in 2009.
The hedge fund had made a profit of $US1.65 million from the violation.
While the fine does not mean there has been an admission of guilt by the pair, the men brought the news to the attention of the ASX board on Wednesday, and the board met that evening to consider potential governance implications.
Mr Aboud did not return calls. Mr Finemore is believed to be in the US and could not be contacted.
Frequently Asked Questions about this Article…
Russell Aboud and Shane Finemore resigned after their US-based hedge fund, Manikay Partners, was fined by US regulators in a nationwide probe of illegal short-selling practices. They informed the ASX board of the matter and stepped down, reportedly of their own accord, with the board accepting their resignations "with regret."
The US Securities and Exchange Commission fined Manikay Partners US$2.5 million for short-selling Citigroup shares in 2009, as part of enforcement actions targeting firms that improperly participated in public stock offerings after selling those same stocks.
No. The article states the fine does not mean there has been an admission of guilt by the two men. It reports the directors brought the news to the ASX board and the board met to consider any governance implications.
According to the article, Manikay Partners made a profit of US$1.65 million from the short-selling activity that was the subject of the SEC action.
ASX chairman Rick Holliday-Smith said the exchange operator's governance remains intact despite the resignations. He noted the board accepted the departures with regret and highlighted the contributions of the two directors.
The two directors resigned one week before the ASX's annual general meeting, after informing the board and prompting a board meeting to consider potential governance implications.
The SEC announced enforcement actions against about 23 US-based investment funds as part of a nationwide investigation into improper short-selling and participation in public stock offerings.
Per the article, Russell Aboud did not return calls, and Shane Finemore was believed to be in the US and could not be contacted.
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