The co-founder of Carphone Warehouse, David Ross, has resigned as a director following a scandal over his use of company shares.

Mr Ross admitted to using over 130m of his 177m shares as security against personal loans without the prior knowledge of anyone in the company.

The co-founder of the telecommunications company has stressed that he had no intention of selling the shares and none of the loans was in default.

At the end of last week's trading Mr Ross's total stake in Carphone was valued at just under £165m.