Oil major BP's share price fell 4% on Tuesday the sudden removal of chairman Albert Manifold following "serious concerns" over his conduct and "bullying" claims.
BP made the shock announcement on Tuesday afternoon that Manifold had been removed with immediate effect, with Ian Tyler appointed as interim Chair while a succession process is carried out.
The announcement read: "The Board of BP announces that it has unanimously decided that Albert Manifold should no longer serve as Chair and Director with immediate effect. This follows serious concerns raised to the Board related to important governance standards, oversight and conduct."
Amanda Blanc, Senior Independent Director at BP, said: "Albert has helped bring a welcome focus and pace to BP's transformation. However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action."
Ian Tyler, Interim Chair, said: "The Board and leadership team have deep conviction in the strategic direction we have laid out, and the company is moving at pace to deliver it. BP is building a track record of strong underlying operational performance and a tight focus on financial discipline - all in the pursuit of growing shareholder value and returns.
"The Board has been very impressed with Meg O'Neill since she joined as CEO. She has extensive industry and operational experience and real clarity about the direction and opportunity for the business. She has already taken bold action to simplify and strengthen the organization such as announcing the move to a clearly defined upstream/downstream model. Under her leadership we are building a simpler, stronger, more valuable bp."
The BBC reports the conduct alleged includes concerns around "bullying" and "overbearing" behaviour.
Manifold told Bloomberg News: "I dispute entirely the characterisation of my conduct and I will not allow a false narrative to go unchallenged."
Markets reacted to the development yesterday as BP's share price fell around 5% initially before recovering slightly to close at 529p, down 4.03%.