Carphone Warehouse director leaves over using stock to back personal loans
Seems the co-founder of Carphone Warehouse has been somewhat naughty in the finance department, as co-founder David Ross has resigned as Carphone Warehouse company director as he backed personal loans with shares without letting it be known to the company.
Roos apparently eventually informed the company on the 7th of December that he had promised 136.4 million shares in Carphone Warehouse against personal loans during 2006 — 08.
Carphone Warehouse stated the shares were worth as of a closing price on the 5th of December, roughly 127 million pounds which is about $191 million.
None of said loans is currently in default and Ross doesn’t plan to sell his stake at present. Ross owns 19.4% of the company as of the 26th of September. Carphone Warehouse has said no other director has uses company shares as security for a personal loan.
Source — bloomberg