Controversial Quindell founder Rob Terry pushed out, but will remain as a consultant to troubled firm

• e-mail

The controversial chairman of Quindell has been ousted following a wave of revelations that have left the company fighting for its corporate reputation.

Rob Terry will quit the board immediately, but remain as a consultant to the company.

Two other directors, finance chief Laurence Moorse and Steve Scott, are also leaving in a boardroom clearout, it will be announced today.

Fundraising controversy: The controversial chairman of Quindell has been ousted following a wave of revelations that have left the company fighting for its corporate reputation

All three took part in an opaque fundraising deal that saw them sell £9million of shares in order to raise funds to buy more stock. 

Scott also used the money to pay a personal tax bill.

The company, which refused to comment, has been rocked by a series of scandals. Only yesterday it emerged that it may have breached City listing rules as its directors chose not to reveal that a key City adviser had quit before they offloaded shares in the company. 

The firm’s joint broker, Canaccord Genuity, resigned on October 21 and agreed to work its one month notice period. 

On November 5 the three directors entered into the share deal that saw them offload stock. The share price has since collapsed from 161p to just 55.5p.

The company believed it did not need to announce Canaccord’s resignation immediately as it was not considered ‘price sensitive’. 

Yesterday shares fell to a three-year low after Quindell made the information public. Shares closed 13p lower at 55.5p. 

In early trade today the stock was down another 4.75p, or 8.5 per cent to 50.75p.

Quindell refused to comment, but sources close to the company insist it does not believe it broke any rules. 

It still has Cenkos Securities as its broker, which worked alongside Canaccord.