Travelzest founder Chris Mottershead has been cleared of all wrongdoing after an investigation by the company into an alleged “misappropriation of funds”.

Mottershead (pictured) launched a defamation action against Travelzest in May after he was suspended the month before at the same time as the company said it was launching the investigation.

He released a statement through his lawyers Schillings today, saying the investigation had found there was no truth in the allegations and his suspension had been lifted.

“The allegation has been found to be unsubstantiated and all monies have been accounted for. All matters in dispute between him and the company have been satisfactorily resolved,” he said.

Mottershead said he had stepped down as chief executive but would remain with the company until July 15, and as a director until further notice.

"It is with some personal sadness that I will soon be leaving Travelzest to pursue new opportunities in the travel industry,” he added.

“Since I established the company in 2005 I have shared some of the most challenging and rewarding years of my professional life with some extremely talented individuals, whose contribution to Travelzest's success has been invaluable.

“In addition to expressing my gratitude to them I would like to wish everyone involved with the company continued success in the future."