THE latest move in the battle over control at York credit card insurer CPP has seen the firm's board withdraw its legal proceedings against the company's founder.

Bosses at the Holgate-based business have announced they will no longer continue their action seeking an injunction against Hamish Ogston, which they previously launched in a bid to prevent him from voting in a upcoming shareholder vote over proposed changes to the board.

As the majority shareholder in CPP, and former chairman, owning 42 per cent of shares, multi-millionaire Mr Ogston is working with Schroder Investment Management, which represents shareholders owning 10 per cent of the company, to oust current CPP chief executive Stephen Callaghan and chairman Roger Canham along with non-executive directors Shaun Astley-Stone and Abhai Rajguru.

The current board argues the proposed director replacements are “not in the best interests of the company or of CPP shareholders as a whole” as they put at risk relationships with the FCA, with which CPP is currently working in order to lift restrictions imposed after it was found guilty of mis-selling services in 2013.

In response to the requisition notice served by Schroders on March 18, CPP announced earlier this month it would be seeking an injunction against Mr Ogston in relation to the forthcoming vote on the proposals due to be held on May.

However the company has now revealed it will withdraw from the proceedings.

CPP has attributed the move to the withdrawal of support from Phoenix Asset Management Partners.

Phoenix, which owns shares carrying around 39.3 per cent of the voting rights in the company, originally confirmed that it was supportive of the board and in support of the company’s proposed application for an interim injunction against Mr Ogston, signing a witness statement in support.

However Phoenix has since indicated its position had changed and they were no longer supportive of the company continuing the interim injunction against Mr Ogston.

In a statement published by CPP the company said: "In light of these developments, the board has concluded that there is no merit in continuing with the legal proceedings and accordingly, in order to avoid the company and Mr Ogston incurring further costs to withdraw from the proceedings.

"The board continues to recommend, unanimously, that CPP Shareholders vote against the resolutions."

CPP also said it anticipates the company may be primarily responsible for meeting legal costs as a result of having initiated the proceedings and then electing to withdraw.