Rob Terry, the founder and chairman of Quindell, has stepped down following a share-dealing controversy that has shocked investors.
The Daily Telegraph has reported that Terry will be followed by his colleagues financial and non-executive directors Laurence Moore and Steve Scott. Moore has said that he intends to aid the hand-over over the next year, vowing to quit the company at its next general meeting.
Quindell’s share price has plummeted to a three-year low as a consequence.
David Currie, who replaces Terry on an interim basis, said: “Rob is the founder of the business and has made a huge contribution to Quindell’s growth to date and the board thanks him for that.”
The current crisis for the group erupted on 5 November, after it was discovered that the three directors did not purchase shares using a loan from a pre-existing stake but, instead, organised a sale and repurchase agreement with US firm Equities First Holdings (EFH).
The company’s stock then sank after investors received news that Terry had bought fewer shares than he had sold.
Quindell also revealed that brokers Canaccord Genuity and Cenkos Securities had resigned on 21 October.
Terry released a statement claiming that he had “the best of intentions for the company and all shareholders,” continuing to confess that he was“clearly disappointed and sorry that events turned out as they did.”
He expects to relinquish his rights to acquire 8,850,000 shares under the sale, adding that he wished to “draw a line under the agreement.”