(Alliance News) - CPPGroup PLC on Friday further distanced itself from its founder, Hamish Ogston, saying Chair David Morrison has informed Ogston that he is no longer Ogston's representative on the CPPGroup board.
The announcement came after the Sunday Times reported evidence suggesting that the British businessman engaged in trafficking or attempted trafficking of sex workers.
CPPGroup is a Leeds, England-based technology-driven assistance and insurance provider. Ogston had founded Card Protection Plan Ltd, a credit card insurance firm, back in 1980, which would later grow into CPPGroup. It listed on the London Stock Exchange in 2010.
Referring to Ogston as a "shareholder in the group", CPP Group on Monday had said Ogston left the board in June 2013.
"Since that time, and save for those rights reserved for shareholders, has had no involvement in the management or operations of the group," the company said.
"It is not appropriate for CPPGroup PLC to comment further," it added.
On Friday, the company said Morrison notified Ogston that he is no longer Ogston's representative on the board. It added that Morrison remains chair.
Citing around 1,000 leaked documents, the Sunday Times said an investigation revealed evidence suggesting Ogston engaged in the exploitation of vulnerable southeast Asian sex workers for the past 15 years. It cited potential offences including breaking laws on immigration, prostitution and human trafficking.
"Ogston said that he did not recognise our account and denies entirely that his conduct amounts to the systematic exploitation of vulnerable women," the newspaper said.
Shares in CPPGroup were untraded at 132.48 pence in London on Friday afternoon. The stock is down 7.0% over the past 12 months.
By Elizabeth Winter, Alliance News senior markets reporter; updated by Tom Waite, editor
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