Town Centre Securities directors Michael Ziff and Edward Ziff have pledged nearly £800,000 worth of shares as guarantee for personal bank loans.
The listed property company said Michael Ziff and Edward Ziff had pledged 722,551 and 312,622 shares, currently held by the trustees of Will Trust No.30, respectively against separate loans made to them on 16 August 1993.
Michael and Edward Ziff are trustees of the Will Trust No. 30 and their children are among the beneficiaries of the trust.
Yesterday Mountview Estates chairman Duncan Sinclair declared he had pledged £10m worth of shares as security for his personal bank loan and overdraft. The 400,000 shares, representing 10.3% of the company, were pledged to Barclays Bank as security.
The Ziff brothers and Sinclair follow other property company directors Aubrey Adams and Tim Ingram in disclosing the use of shares as security against personal loans.
Ingram, a non-executive director of Savills, has pledged 24,000 of the firm’s shares, worth £57,600.
Public company directors have pledged almost £700m worth of shares as collateral against personal loans.
More than 50 companies have disclosed share-backed loans in the two weeks since the City's top regulator declared an amnesty on such deals, which expires tomorrow.
The use of shares as collateral for personal loans without disclosing them sparked a row six weeks ago after David Ross, the co-founder of Carphone Warehouse, admitted that he had pledged almost 14% of the mobile phone retailer to JPMorgan as security on loans.
He was forced to resign from his directorships of Carphone Warehouse, National Express, the transport group, and Big Yellow, the self-storage company.