Charles Dunstone’s business partner quits

The schoolfriend of Carphone Warehouse tycoon Charles Dunstone, who co-founded the company with him, has dramatically resigned from the high street retailer's board today. David Ross (right in the picture with Dunstone) had pledged more than £150 million worth of Carphone shares as security against personal loans, without telling the board.

Announcing his departure, Carphone Warehouse made it clear that none of the loans were in default. Nor did Ross, 43, who is the second largest shareholder after Dunstone, have any intention of selling his shares. The problem - and why he had to go - is that under Stock Exchange rules a company director must make it public if they use shares as security against borrowings.

Dunstone, who has known Ross since they attended Uppingham School together in the 1970s, said: "It's a very sad day for me, having been together with David for more years than I care to think."

In a terse statement, Carphone Warehouse told the Stock Exchange that Ross had "pledged 136.4 million shares in the company against personal loans". However, it is not just Carphone Warehouse. Ross admitted today he had similarly used share stakes in other major companies where he is a director as guarantees. These include National Express where he is chairman, storage company Big Yellow and ship supply group Cosalt.

In total he has pledged shares worth more than £200 million against personal loans. It is believed he used the bulk of the loans to invest in commercial property.

Ross is one of the country's wealthiest entrepreneurs, and lives in some style. He bought Nancy Cunard's estate in Leicestershire - Nevill Holt - in 2000, restoring the 13th-century house and keeping a gold Land Rover in the drive. He also has homes in Knightsbridge and Mustique. He recently put up for sale his 1,500-acre Northamptonshire estate, Manor Farm, after his step-sister and her partner were murdered there by her estranged husband.

Former girlfriends include the model Saffron Aldridge and a lap-dancer, Michelle Ross, with whom he has a son. She was in the headlines in 2004 when she was found guilty of benefits fraud.