Oil group Exillon Energy has settled a fine with the Financial Services Authority (FSA) over its failure to disclose payments made to its former Chairman.
Exillon was ordered to pay £292,950 relating to the payment of £930,000 to Maksat Arip, the Chairman of the company at the time the payments were made, between January and December of 2010.
Exillon said it "accepts" the FSA's decision, but was keen to emphasise that the authority did not conclude that any officer had acted improperly, or suggest that any party benefited financially or that Exillon's shareholders suffered any losses.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The FSA said the company had failed to properly categorise some of the payments, which were made to cover business-related expenses as well as items such as educational costs and personal travel.
Arip arranged to pay back the money to Exillon, with interest, in 2010.
In a statement the FSA said: "Our related party rules protect minority shareholders in premium listed companies by ensuring large shareholders and company directors cannot unfairly benefit from their positions in the corporate governance of a listed company."
The share price was up 0.44% at 137.60p by 13:54.
NR
-
DIY pension investors take tax-free cash amid switch to ISAsSelf-invested personal pension (SIPP) investors are rushing to withdraw their tax-free cash and turning to ISAs amid fears of a pension tax raid in the Autumn Budget
-
12 ways pensions could be reformed in Budget – including an alternative to charging IHTPension savers could face new rules after the Budget if chancellor Rachel Reeves targets their pots to fill her own fiscal black hole – what potential pension changes could be on the way?
