THE founder of York credit card insurer CPP has regained control of the business after shareholders supported a move to overthrow its board.

A general meeting of the Holgate-headquartered businesses this afternoon saw shareholders vote in favour of a motion put forward by Hamish Ogston, seeking to oust chief executive Stephen Callaghan and chairman Roger Canham along with non-executive directors Shaun Astley-Stone and Abhai Rajguru.

Multi-millionaire Mr Ogston, who founded CPP in 1980, and is the majority shareholder owning 42 per cent of shares, announced in March a requisition to replace the board with businessmen Sir Richard Lapthorne, Nicholas Cooper and Mark Hamlin.

He was backed in his move by Schroder Investment Management, which put forward the motion, acting as discretionary manager on behalf of clients who are holders of ten per cent of the paid up capital of the company.

The former chairman of the company until 2005, Mr Ogston has not had any involvement in running CPP since he stepped down as a director in 2013, when the company was found guilty of miss-selling services by the Financial Conduct Authority, and fined £10.5 million, as well as being ordered to pay subsequent compensation totalling £65.8 million.

Following the passing of the motion yesterday, chief executive Stephen Callaghan will leave the business, having joined in April last year, and going on to lead the group in reporting profits of £20.8 million in its latest full year accounts, up from losses of almost £7 million the year before.

Mr Callaghan had received the backing of a group of staff at the firm, which employs a total of 550 people in York, as employees rallied together to launch a petition against the proposals, gaining hundreds of signatures from UK and overseas-based staff.

CPP had sought an injunction against Mr Ogston in a bid to prevent him voting on the proposals, however the company last month withdrew its legal proceedings after losing the support of Phoenix Asset Management Partners, which owns shares carrying around 39.3 per cent of the voting rights in the company, and originally confirmed it was supportive of the current board's position.

In a brief statement issued to the market shortly after 5pm, CPP confirmed the resolution had been passed, and that Sir Richard Douglas Lapthorne, 73, Nicholas Ian Cooper, 51, and Mark William Hamlin, 61, will be appointed with immediate affect, with further appointments to be made to the board "in due course".