Carphone Warehouse co-founder quits

The co-founder of the mobile retail giant Carphone Warehouse stood down from his position as deputy chairman of the board after failing to declare that he had pledged his shares in the company against personal loans.

According to the Telegraph, David Ross had allegedly pledged 136.4 million shares against various loans between 2006 and 2008 – under stock exchange rules, shareholders must be informed of such activities – and immediately resigned his position after informing the board of his failure to properly notify the company and its investors.

Charles Dunstone, Carphone Warehouse’s chief executive, said the lack of disclosure was due to “an oversight or misunderstanding of what needed to be done.”

Carphone Warehouse is now looking to reassure investors that no other board member has made a similar mistake, stressing that none of Mr.Ross’ loans are in default and that he has no intention of selling his stake.