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(Reuters) - Quindell Plc (L:QPP), a British technology and outsourcing company, named retail veteran Richard Rose as non-executive chairman, nearly two months after founder Robert Terry vacated the post following a controversial share deal.
The company's volatile stock jumped nearly 40 percent, making it one of the top percentage gainers on the London Stock Exchange.
Quindell also named Jim Sutcliffe, the former CEO of insurer Old Mutual Plc (L:OML), as deputy chairman and strategy director.
The company, which provides technology used by car insurers to assess claims among other services, said the appointments would be subject to approval from the Solicitors Regulation Authority.
Rose, who is currently non-executive chairman of UK's biggest cash-and-carry wholesaler Booker Group Plc (L:BOK), would be granted stock options of about 8.73 million shares, the company said. The board intends to grant Sutcliffe about 10.9 million shares.
Quindell's last disclosure indicated that Terry, who was retained as a consultant, had 38 million shares, thus owning more than 8.5 percent of the company's ordinary shares.
Terry's resignation as chairman had followed the company's disclosure that he, along with two other directors, had bought Quindell shares after entering in a sale and repurchase agreement with Equities First Holdings LLC, a securities-based lender.
The company, which has had a tumultuous few months where its motivation behind some acquisitions was doubted and joint-broker Canaccord Genuity quit, last month hired PriceWaterhouseCoopers to conduct an independent review of its accounting policy and its ability to generate cash.
Quindell on Monday said it expected the review to be concluded by February end, adding that operating cash inflow before exceptional items but including initiatives was about 13 million pounds ($20 million) for the second half of 2014.
Shares in the company were up 27.4 percent at 108 pence at 0917 GMT. Until Friday's close, the stock has lost 85 percent in value since April when short-seller Gotham City Research called into question its revenue model and profit quality.