Inland Homes PLC (AIM:INL) shares tumbled more than 25% lower on Wednesday after it announced that its chair Simon Bennett and the group's other non-executive directors Carol Duncumb and Brian Johnson have resigned with immediate effect.
In a statement, Inland Homes said: "The Company has become aware of certain related party issues (which may or may not fall to be treated as related party transactions under the AIM Rules) of which the Board was not informed at the relevant times. The Company is collating relevant details, following which a further announcement will be made."
Bennett will become a non-executive director for a maximum period of two weeks while additional appointments are finalised. But he will leave by March 14 at the latest.
Should Inland Homes fail to make an appointment within two weeks then shares would be suspended as the board would be below the minimum threshold for members.
Inland Homes, which said yesterday that publication of annual results would be delayed, said one of the original founders and former CEO, Stephen Wicks is rejoining the board as soon as possible.
Shares in Inland Homes were down 26% to 7.50p in early trading in London on Wednesday.