That’s a big no-no in the corporate world. Some even would prefer someone caught using company funds, but using their own stake in the company to get loans from elsewhere (thereby deceiving two companies in the process) is viewed with much greater shame.

The Carphone co-founder pledged 136.4 million shares against personal loans, through various agreements between 2006 and 2008, which he failed to disclose to shareholders (another big corporate no-no).

Carphone Warehouse said in a statement: ‘David Ross has tendered his resignation as a director of the company with immediate effect and will continue to pursue his various other business interests.’ The company added no other official was involved with this, as far as they knew.

Ross was chief operating officer for Carphone between 1990 and 2003, and became deputy chairman in July 2005. Carphone said that the news of the pledges against loans has no bearing on its agreement with US chain Best Buy (and if it did, Mr. Ross would probably be in a courtroom, not dismissed with a terse press release).

Goes to show you: Watching people in power closely in these troubled economic times is probably a good idea.