The co-founder of Carphone Warehouse, David Ross, has resigned,
after failing to notify the board that he used his shares in the
company to underwrite personal loans.
By John Oates for The Register. This story has
been reproduced with permission.
The company discovered yesterday that Ross had used a stake of
136.4 million shares in the company to secure personal loans. He
has 160 million in total, a substantial proportion of CPW's 914
million outstanding shares. Ross has told the company that none of
these loans are in default, but he has resigned from his position
as a board director and deputy chairman.
The deals were done between 2004 and 2006. Ross told the company
he had no current intentions to sell the stock and promised to
"facilitate an orderly market, were possible, for any future
disposal".
Carphone Warehouse said in a statement: "No other Director of
the Company has granted security over or entered into any financial
instruments relating to any of their holdings of ordinary shares in
the Company."
Shares in the firm are down 4.5 per cent against a market which
is up over five per cent.
Ross, a chartered accountant, was appointed in May to
run the 2012 Olympics on behalf of Mayor of London Boris
Johnson. The role is unpaid.
© The Register
2008
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