WH Ireland investor quits Carphone after breaching FSA rules
David Ross, one of a consortium of new investors at Manchester-based stockbroking firm WH Ireland, today quit the board of the Carphone Warehouse, which he co-founded.
His departure was prompted by the admission that he failed to declare the use of 136.4m of the company’s shares as collateral for personal loans.
Ross used the shares in this way over the past two years but only told the company yesterday, despite Financial Services Authority rules which say such moves must be declared.
He said he was up to date with payments on the loans and added that he had no intention of selling his 20 per cent stake in Carphone. Despite this, the shares slid 5 per cent today.
Ross set up the company with old school friend Charles Dunstone, Carphone’s chief executive. Dunstone said his failure to declare was “an oversight” and described his resignation from the board as “a sad occasion”.
Ross is one of a group of investors, including former Conservative Party treasurer Lord Marland and JJB Sports founder David Whelan, who have built up a 27 per cent stake in WH Ireland after first acquiring shares in May.
http://www.crainsmanchesterbusiness.co.uk/apps/pbcs.dll/article?AID=/20081208/FREE/812089965/-1/breaking
How far down the domino trail is SLH?