THG boss Matt Moulding will dispose of his golden share in the business he co-founded and apply to move onto the main market of the London Stock Exchange next year.

The controversial share, which has been a point of contention for traditional City investors since THG’s float last September, gave Moulding the right to veto any takeover bid for three years.

It also prevented THG firm joining the FTSE100 under stock exchange rules.

But today THG has confirmed reports from The Times and Sky News that Mouding will dispose of his special share rights in “furtherance of good corporate governance.”

The move by Moulding comes after a plummet in THG’s share price in recent weeks, exacerbated by the retailer’s capital market day last week, after which THG’s already impacted share price fell a further 35% - equating to a fall in market value from £5.33bn to £3.48bn in a single day.

City confidence in THG has declined in recent weeks since the retailer unveiled plans to list its THG Beauty division in a seperate stock market listing, with questions about the group’s arrangement with investment firm Softbank around its THG Ingenuity division exacerbating uncertainty.

THG has said its disposal of Moulding’s special share would allow shareholders to “vote on any future material acquisitions” and require it to comply with listing rules of the premium section of the main market.

THG boss Matt Moulding said: “After the anniversary of our 2020 listing we feel that the time is right to make this next step and apply to the Premium segment in 2022, thereby continuing the development of THG as we endeavour to deliver our strategy for the benefit of our shareholders, key stakeholders and employees.”