Securities and Exchange Commission



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Monday with failing to disclose relationships between the company and its directors.

In settling the charges, the Burbank, Calif., media conglomerate consented to an order barring it from breaking securities laws.

The SEC found that between 1999 and 2001, Disney failed to disclose relationships between the company and its directors in proxy statements and annual reports.

In particular, the agency says, Disney failed to disclose that the company employed three children of directors who received annual compensation ranging from $60,000 to more than $150,000. Disney also didn't disclose that the spouse of another director was employed by a subsidiary half-owned by Disney and received compensation in excess of one million dollars annually.

Finally, the SEC says Disney failed to disclose that it made regular payments to a corporation owned by a Disney director that provided air transportation to that director for Disney-related business purposes. It also provided office space, secretarial services, a leased car and a driver to another Disney director, services valued by the company at over $200,000 annually.

Early Monday, Disney rose 15 cents to $27.52.