LONDON, Dec 25: – A non-executive director of Asia Energy PLC, which is developing Phulbari coalmine in Bangladesh, resigned after he had been fined by the British financial watchdog for a share scam involving another company, reports BDNews.

"Within two hours of fining Jonathan Malins by Financial Service Authority (FSA), we called him and he resigned," a senior executive of Asia Energy told BDNEWS.

The executive said Malins holds "insignificant" number of 250,000 shares out of 6.5 million shares of Asia Energy.

Malins was originally executive director of Cambrian Mining, which is also a stakeholder of the Asia Energy.

The FSA imposed a £25,000 fine on Jonathan Malins after it had found that Malins twice bought shares in Cambrian while in possession of positive inside information.

He bought 50,000 shares of Cambrian in March hours before the announcement of a share placing quickly netting him a paper profit of up £6,000.

A week later he bought 20,000 shares in Cambrian one hour before the publication of forecast-beating financial results. It handed Malins a paper profit of £400.

"There is no link between the Asia Energy and his fault found by the FSA in the Cambrian," said the Asia Energy executive.

Cambrian Mining, the London Alternative Investment Market or AIM-listed mining company, meanwhile, refused to accept the resignation of Jonathan Malins.

But the company stripped Malins of share options worth almost £70,000 and forced him to resign from directorships at two related companies -- Asia Energy and Cambrian Oil & Gas -- which were paying him fees of more than £37,000 a year.

Charles de Chezelles, Cambrian's chairman, said the matter was a "storm in a teacup" and would not require Malins to resign.

In a statement, he said: "While in no way condoning the purchase of shares by Mr Malins during a close period, the board, being fully aware of all the circumstances surrounding the matter, and in view of the fact that none of the shares purchased has been sold, is of the opinion that Mr Malins did not seek to gain immediate financial advantage."