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…
Two ASX directors, 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 decided to stand down, with the board accepting their resignations.
The US Securities and Exchange Commission (SEC) conducted enforcement actions against about 23 US‑based investment funds. One specific outcome was the SEC fining Manikay Partners US$2.5 million for short‑selling Citigroup shares in 2009.
Manikay Partners was fined US$2.5 million by the SEC for short‑selling Citigroup shares in 2009. The hedge fund reportedly made a profit of US$1.65 million from that violation.
Yes. The two directors brought the SEC action to the ASX board’s attention and the board met that evening to consider the potential governance implications. ASX chairman Rick Holliday‑Smith said the board accepted the resignations 'with regret.'
According to the article, Mr Aboud and Mr Finemore made the decision on their own to stand down from the ASX board. The board then accepted their resignations.
No. The article notes the fine does not mean there has been an admission of guilt by the pair, although they disclosed the matter to the ASX board and it prompted the board to assess governance issues.
The resignations took place on a Thursday, about one week before the ASX’s annual general meeting, according to the article.
ASX chairman Rick Holliday‑Smith has emphasised that the exchange operator’s governance remains intact despite the resignations. The board has reviewed the matter and accepted the departures, and investors should watch for any further ASX announcements or outcomes from the upcoming annual general meeting.
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