Carphone co-founder resigns over personal loan deals
David Ross used his stake in the company to secure personal loans
Carphone Warehouse director and co-founder David Ross has resigned with immediate effect, after it was discovered he used his stake in the company to secure personal loans.
The Carphone co-founder pledged 136.4 million shares against personal loans, through various agreements between 2006 and 2008, which he failed to disclose to shareholders.
Carphone Warehouse said in a statement: ‘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.’
The company added: ‘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.’
Ross was chief operating officer for Carphone between 1990 and 2003, and became deputy chairman in July 2005.
Carphone said that the news of the pledges against loans has no bearing on its agreement with US electrical chain Best Buy.