Munir Malik, who was part of the group's "values and principles board" has been suspended, and an investigation launched into his qualifications.
A spokesperson for the Co-operative Group said, “Munir Malik is currently suspended as a director of The Co-operative Group pending the outcome of a board investigation in relation to the qualifications stated in his election materials.”
The ICAEW told economia that Malik had been previously struck off as a chartered accountant and shouldn't be using the qualification.
He was appointed to the Co-op board in May 2013.
According to a report in the Financial Times the investigation has been “going on for some time".
The news comes on the same day that the Co-operative Bank announced losses of £1.3bn and caps off a week to forget for the crisis-hit group. In its annual results, the bank has issued an apology to its customers alongside warning it does not expect to make profits for the next two years.
Earlier this week, the former City minister Lord Myners quit his place on the Co-operative Group board after only four months in the role. He will still conduct a review into the Co-op’s democracy, including consideration of how the board is constituted and chaired.