Gavyn Davies resigned following heavy criticism from Lord Hutton
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More changes to the way the BBC is run must be made following chairman Gavyn Davies' resignation, media figures and politicians have said.
Lord Hutton criticised BBC journalists, managers and governors after an "unfounded" story said the government had "sexed up" the Iraqi threat.
ITN and the Conservative party want regulation of the BBC, currently the remit of governors, to be overhauled.
Commentators have also said changes to editorial practices should be made.
ITN chief executive Mark Wood said Lord Hutton's report raised some "very important issues about failings in the system of BBC governance".
Mr Gilligan's central allegation was "unfounded", Lord Hutton said
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The current structure "confuses the role of the governors and raises questions about how effectively the BBC is regulated", he told BBC News Online.
"We hope that action will now be taken to resolve the contradictions which the Hutton report has highlighted."
And Shadow Home Secretary David Davies called for media watchdog Ofcom to take over the role of the governors.
"The governors cannot continue to be judge and jury on complaints about the BBC's own behaviour," he said.
The corporation must be independent of government but publicly accountable "to prevent a recurrence of recent events", he added.
Prime Minister Tony Blair told the House of Commons all issues would be considered in "a thorough review of the [BBC's] Charter".
The BBC's Charter is due to be renewed by the government in 2007.
Director General Greg Dyke said the BBC had "taken steps to improve our procedures" - including better complaints handling, new rules about staff writing newspaper columns and new editorial guidelines which are on their way.
But media commentator Tim Luckhurst told BBC News Online that Mr Dyke himself could find it difficult to stay in his job.
Mr Luckhurst, author of This Is Today, about BBC Radio 4's Today programme, said: "Under the circumstances, he has to be responsible for that defective editorial system."
Further resignations
And he could not remain if other BBC figures beneath him were forced to resign, Mr Luckhurst added.
"If Dyke does not go, it would be intolerable for him to suggest that people junior to him in the hierarchy go."
Former BBC vice-chairman Lord Barnett said neither Mr Davies nor Mr Dyke had asked enough questions to find out whether Mr Gilligan's original report was correct.
"There is going to have be some serious consideration beyond the resignation of Gavyn," he told BBC News 24.
Before Mr Davies' resignation was announced, a string of former BBC journalists and executives said the corporation needed to make changes.
Will Wyatt, chief executive of BBC Broadcast from 1996-9, told BBC News Online Lord Hutton's report was a "damning criticism of the BBC" and it was "essential" that guidelines for breaking news stories were re-examined.
Tom Mangold, a former BBC journalist and friend of Dr Kelly, described Lord Hutton's criticism as "an earthquake" for the BBC.
"I'm glad Hutton has put his finger on the problem - I'm sure the BBC will deal with it rapidly," he told ITV News.
'Big challenge'
Former Today editor Rod Liddle said there must be "some organisational changes" because the corporation had to be "very rigorous" about the way it approached serious journalism.
But he told Sky News that Mr Gilligan's original story was "very, very important" and it was brave of the BBC "to do it and brave of the BBC to stick up for its reporter".
Former BBC reporter and government media director Martin Sixsmith said there was now "a very big challenge" for the BBC.
And ex-deputy head of BBC News Richard Ayre said there would be lessons the BBC "has to learn and will want to learn".