Business
Related Party Transaction
Related Party Transaction.
About this update from Primorus Investments Plc
[{"type":"text","content":"\n CSS Stellar PLC\n24 April 2006\n\n\nCSS Stellar plc\nRelated party transaction\n24 April 2006\n\nCSS Stellar plc ('CSS' or the 'Company') today gives notification that it has\nentered into a deed of indemnity with Sean Kelly, the Chief Executive of the\nCompany (the 'Indemnity'). The Indemnity is in line with those adopted by many\nleading companies and accord with the provisions of the current legislation and\nthe Company's articles of association. The terms of the Indemnity involve the\nCompany, to the extent permitted by law, in indemnifying and holding the\nrelevant individual harmless against any liability of such person arising out of\nthe actual or purported exercise of (or failure to exercise or alleged failure\nto exercise) any of his powers, duties or responsibilities as director or\nofficer of any group company of CSS. The Company believes that the Indemnity is\nrequired to provide the beneficiary with an element of protection against\nunforeseen personal legal action when carrying out his duties in the best\ninterests of the Company and supplement the Company's existing Directors' and\nOfficers' insurance.\n\nNotwithstanding that there is no quantifiable additional cost to the Company of\nits implementation and that it is not currently expected that any claim under\nthe Indemnity will arise, the Indemnity represents a substantial transaction for\nthe purposes of rule 12 of the AIM rules of the London Stock Exchange because\nthe terms of the Indemnity granted to Mr Kelly are unlimited.\n\nThe Indemnity constitutes a related party transaction for the purposes of the\nrule 13 of the Aim rules of the London Stock Exchange as it is between the\nCompany and a director. Mr Kelly has not accrued any quantifiable benefit as a\nresult of entering into the Indemnity.\n\nThe Indemnity was approved by way of a board resolution, from which Mr Kelly\nabstained from voting. With the exception of Mr Kelly, the directors of the\nCompany consider, having consulted with the Company's nominated advisor, that\nthe terms of the Indemnity are fair and reasonable insofar as its shareholders\nare concerned.\n\nIn accordance with the Companies Act 1985 (as amended), copies of the Indemnity\nwill be available for inspection at the next annual general meeting of the\nCompany.\n\n\nFor further information contact:\n\nCSS Stellar plc Tel: 020 7...