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.
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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
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