Carphone Warehouse co-founder David Ross (pictured) has quit as director of the company over use of his shares in the business as security against personal loans.
Ross holds 19.4 per cent of Carphone shares and is the second-largest shareholder after group chief Charles Dunstone. Carphone said Ross had between 2006 and 2008 pledged 136.4 million ordinary shares in Carphone, out of his total holding of 177 million, against personal loans.
Carphone said in a statement: “David Ross has notified the Company that none of these loans is currently in default and that he has no current intention to sell any of his shares in the Company.
“In addition, he has given an undertaking to the Board to facilitate an orderly market, where possible, for any potential future disposal of shares in the Company.
“David Ross has tendered his resignation as a Director of the Company with immediate effect and will continue to pursue his various other business interests.”
Carphone made clear Ross’ actions were unique among other shareholders, none of whom own more than four per cent of the company.
Ross also sits on the board of the organising committee for the London 2012 Olympics, brought in by London Mayor Boris Johnson.
Ross will retain his shareholding in Carphone, despite his exit from the board.