The pressure on AIM-listed alternative business structure Quindell has today resulted in founder and executive chairman Rob Terry resigning from the board of directors with immediate effect.
He is also relinquishing his rights to acquire nearly 9m shares under the controversial share sale and repurchase deal announced earlier this month that destabilised Quindell’s share price, removing more than half of its value in little more than a week.
The other two directors involved in the deal are also stepping down.
David Currie has become non-executive interim chairman while a new chairman is recruited. Mr Currie only joined the board in June; he headed Investec Bank plc’s investment banking division before recently establishing Codex Capital Partners.
A statement released to the stock exchange this morning said: “The directors believe that, in order to ensure an orderly transition, it is desirable to retain Mr Terry on a consultancy basis with particular focus on the group’s key relationships and he will be available to assist the board, where appropriate, in executing its strategy.”
Laurence Moorse, group finance director, has agreed to step down from the board following the 2015 annual general meeting, and remain with the company for up to a year thereafter “in order to effect an orderly handover”.
Non-executive director Steve Scott is stepping down from the board with immediate effect.
The board said it “remains confident in the future prospects of the business”.
Mr Currie 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. We look forward to completing our search for a new chairman and additional non-executive directors as soon as possible.”
Mr Terry said: “I entered into the share transactions announced on 5 November 2014 with the best of intentions for the company and all shareholders and it would have been my intention to acquire more shares were it not for the restrictions due to the discussions leading to this announcement. I am clearly disappointed and sorry that events turned out as they did.
“In view of the share price performance of the last few days, it is likely that a margin call will be made in relation to the share transactions and, at the current share price, I would expect to relinquish my rights to acquire 8,850,000 shares under the EFH sale and repurchase agreement, rather than satisfying the margin call as this would now no longer make economic sense.
“This will draw a line under this agreement and I have no intention of making further use of this agreement or its like again.”