Mark Kindermann, the chief operating officer of Grenke AG, has resigned from his role on the company’s supervisory board before critical audits into the company’s business dealings could be completed, Grenke AG reported 8 February.

In a statement, the German-based SME lender and leasing company said that “in order to ensure a smooth handover, it was agreed that Kindermann will be available to the company for a transitional period after his departure from the board of directors.”

“The preliminary assessments made in the course of the ongoing audits are critical of previous internal processes in the compliance organisation and Internal Auditing department,” the statement said.

“Kindermann has pointed out to the supervisory board that it will be necessary to revise the preliminary assessments once the audits have been completed.

“Kindermann decided to resign from his mandates today to avoid any dispute prior to completing the audit with regard to the justification or materiality of these criticisms and to prevent any potential damage therefrom to the company.

“The supervisory board would like to thank Kindermann for his many years of service as a member of the board of directors and for his support in assigning the Internal Audit function to the CEO and in appointing a Chief Risk Officer to be responsible for all compliance functions of the Company.

“The swift continuation and completion of the audits remain a top priority for the company.

“The supervisory board will decide shortly on the reassignment of the responsibilities on the board of directors. until that time, the rules on deputisation will apply,” the company said.