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Activist investor Elliott has urged BHP Billiton to appoint a "strong, experienced and visionary" chairman, amid speculation that the mining company will soon appoint a replacement for chairman Jac Nasser.
In a fresh statement released on Wednesday, Elliott did not name its preferred candidate, but challenged BHP to achieve the twin goals of refreshing the board while appointing an experienced chairman.
When specifically asked by The Australian Financial Review who Elliott would like to see as chairman, the hedge fund declined to comment.
But in its statement, Elliott said an upgrading of directors was required.
"The appointment of a strong, experienced, and visionary chairperson would be a welcomed first step for BHP," said Elliott in the statement.
"But it would only be a first step. BHP has an entrenched board, with long-tenured directors having approved the disastrous acquisitions and poorly timed share buybacks that are at the root of much of today's underperformance. A significant upgrade in directors is needed."
The latter comment would appear to rule out Elliott's support for two of the three men said to be the favourites for the role; Orica chairman Malcolm Broomhead and Westpac chairman Lindsay Maxsted.
Mr Maxsted had been on the BHP board approximately five months when BHP paid $US15 billion for the US shale assets owned by Petrohawk Energy in August 2011, but was not on the board when BHP paid just under $US5 billion for several US shale assets owned by Chesapeake Energy in February 2011.
Mr Broomhead was on the board for both shale acquisitions, which BHP chief Andrew Mackenzie described in May as being "poorly timed" and too expensive.
"We acknowledge that the acquisitions that took us into this business were poorly timed, and we paid too high a price...early on, the very rapid pace of development was not optimal," said Mr Mackenzie in Barcelona in May.
Former Amcor boss Ken MacKenzie joined the BHP board in September 2016, and has been touted along with Mr Maxsted and Mr Broomhead among the favourites.
Big shareholders in BHP indicated on Tuesday that they would back Mr MacKenzie if appointed.
Elliott claims to be a big shareholder, but according to documents filed to the US Securities and Exchange Commission on May 15, the company owns the equivalent of 0.17 per cent of BHP's London listed stock, which would give the hedge fund ownership over about 0.08 per cent of BHP.
Elliott said the next chairman would also have to review the management team, which is led by chief executive Andrew Mackenzie and chief financial officer Peter Beaven.
"The way forward for the next chairperson is clear. That person will need to address the company's poor capital allocation and underperformance, nominate diverse and qualified directors, and review the executive management team," said Elliott.
"BHP's shareholders have sent a clear message to the board and management team; it is time for change at BHP."
Mr Nasser is the longest serving member of BHP's board, having joined in June 2006.
Five members of the 11 person board, including Andrew Mackenzie, have joined the board since May 2013.