David Ross, co-founder of Carphone Warehouse, has resigned from his position as deputy chairman, according to Reuters.
Ross failed to declare that he had pledged 136 million of his 177 million shares in the company against personal loans between 2006 and 2008.
According to UK stock exchange rules, a director must inform the company if using shares against personal loans so the company can issue a statement to shareholders. Ross, who owns 19 per cent of all shares in the company, did not disclose the information until yesterday, stating that he did not intend on selling his shares and that none of his loans were in default.
Charles Dunstone, chief executive and co-founder of Carphone Warehouse, said that he did not know why Ross had not declared his loan arrangements. "I think it was probably an oversight or a misunderstanding of what needs to be done," Dunstone said, according to Reuters.
Ross did not disclose his holdings in National Express, a company of which he is a chairman, or his shares in Big Yellow Group or Cosalt, both of which he is a director.
With files from Reuters.
