Four independent directors walked out after the board rejected recommendations they had made on management changes in the wake of the disclosure of $32.2m in unauthorised or misreported management payments at Hollinger International, for which Hollinger Inc is the holding company.
The committee issued a statement saying: ‘The members of the audit committee believe that they are no longer in a position to serve effectively’.
Lord Black, who continues as chairman at Hollinger Inc despite his resignation last week as chief executive of Hollinger International, said the board would accept only parts of the committee’s recommendations. He added: ‘The recommendations with respect to management and board changes were not appropriate.’
The departing independent directors are Douglas Bassett, the Canadian TV businessman, retail entrepreneur Fredrik Eaton, Allan Gotlieb, a former Canadian ambassador to the US, and Maureen Sabia, a board member at Canadian Tire.
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