Carphone Warehouse chief quits after securing personal loans with shares

08 December 2008 / by Rebecca Sargent
Carphone Warehouse director David Ross resigned yesterday with immediate effect after it emerged that he had been securing company shares against personal loans without declaration.

According to a Carphone Warehouse Company press notice released today, Mr Ross had been placing the mobile phone company's shares against personal loans through various agreements between 2006 and 2008 without notifying shareholders.

In total, Ross pledged 136.4 million ordinary Carphone Warehouse shares, although he has said that the personal loans are not in default and he does not intend to sell the shares he holds in the company.

And it is not just Carphone Warehouse that has been affected by Mr Ross's actions. Big Yellow, the storage company where he is a director, has come forward today with similar news that Ross has pledged 11,456,140 of company shares against personal loans in the last two years.

Travel service National Express, where Mr Ross is chairman, has also announced that 3,013,402 company ordinary shares were pledged by Ross against personal loans on or after March 23 2006.

Carphone Warehouse shares are currently 3.5p down since last nights close at 89.5p, National Express shares are down 13.75p to 464.75p and Big Yellow shares have fallen 10.5p to 201.75p, it is thought that the announcements of David Ross's actions have caused these drops.

© Fair Investment Company Ltd