Shamed credit card bosses oust board in coup

THE founder of shamed credit card company CPP sensationally overthrew its new bosses yesterday in the climax of a bitter boardroom power struggle.

Hamish Ogston dethroned chairman Roger Canham, chief executive Stephen Callaghan and two nonexecutives by using his 42pc shareholding to vote for a change of leadership.

Ogston did not even bother to attend the five-minute meeting in the City yesterday at which they lost their jobs. He was instead represented by Clifford Chance lawyer Tim Lewis, who refused to answer questions about the coup.

Ogston set up CPP in 1980 and he made £120m when it floated on the stock market six years ago.

But it was fined £10.5m in 2012 for misleading customers into buying worthless insurance for debit, credit or store cards when they were already covered by their banks. Ogston stepped down as a director in the wake of the scandal.

Turnaround specialist Callaghan joined in March last year, leading it to a £20.8m profit in 2015 compared with a £6.7m loss for the previous 12 months.

He hailed the results as ‘a new beginning for CPP’ – but Ogston teamed up with 10pc shareholder Schroders to oust him and other board members.

They have been replaced by Cable & Wireless Communications chairman Sir Richard Lapthorne, deputy chairman Mark Hamlin and former executive Nick Hooper. Hundreds of CPP staff signed a petition against the move.

The vote was held at Schroders’ request. The outgoing board accused it of backing Ogston because he has investments with one of its affiliates, although Schroders sources denied this. CPP shares rose 1.4pc, or 0.12p, to 9.12p.