Former Rio Tinto boss Guy Elliott has quit as non-executive director of Royal Dutch Shell after the US Securities and Exchange Commission (SEC) issued legal proceedings against him over fraud.
The SEC alleges Elliott “failed to follow accounting standards and company policies to accurately value and record its assets”.
Rio Tinto bought a Mozambique mining interest in August 2011 for $3.7bn when publishing its 2012 interim results (published 8 August 2012) but wrote off 80% of the assets less than a year later, eventually selling for $50m.
Return to Shell board open
Commenting on the announcement, Royal Dutch Shell chair, Charles Holliday said: “We fully respect and appreciate Guy’s decision which is related to his involvement in legal proceedings regarding his former employment at Rio Tinto.
“We will miss his insightful counsel and leadership and would like to thank him for his seven years of valuable contribution to the Shell Board. We sincerely hope he satisfactorily resolves those proceedings and, that in that event, he would like to be considered for rejoining the Board.”