Judge removes Hollinger directors

Lord Black's media empire appears to be crumbling around him

A Canadian judge has ordered the removal of three directors from the board of Hollinger Inc, the holding company of Lord Black.

His wife Barbara Amiel, and colleagues JA Boultbee and David Radler, have all been removed after the judge backed the request of a minority shareholder.

Lord Black himself recently stood down as chief executive of Hollinger Inc, to aid his efforts to take it private.

On Monday, Lord Black was charged with fraud by US regulators.

'Self interest'

The call to remove the three directors was made by shareholder Catalyst Fund General Partner.

Catalyst was unhappy that Hollinger Inc had given a $900,000 loan to Ravelston - another company led by Lord Black - without first being authorized by Hollinger's board.

Justice Colin Campbell of the Ontario Superior Court said the three were "motivated by putting their interests first, not those of the company".

"Their (Amiel's, Boultbee's and Radler's) continued involvement as directors of Hollinger Inc at this time would significantly impede and perhaps jeopardize the interests of the public shareholders of Inc in extricating the company from the US litigation (it currently faces)," he said.

Justice Campbell also ruled that there is no need at this time for any additional directors to be appointed.

'Siphoned money'

The US fraud charges are in regard to Hollinger International, the Chicago-based newspaper group in which Hollinger Inc has 68% of the voting rights.

Lord Black and Mr Radler stand accused of having fraudulently diverted some $85m (£46m) from Hollinger International between 1994 and 2003.

The Securities and Exchange Commission (SEC) said they treated the company as if it was "their personal piggy bank".

In addition to the civil suit from the SEC, which could result in a multi-million pound fine, Hollinger International is itself suing Lord Black to recover lost funds.

It forced Lord Black to resign from its board a year ago. He continues to deny the changes.

Hollinger International announced plans on Wednesday to sell its Jerusalem Post title to an Israeli media company for $13.2m.

Earlier this year it sold the Telegraph UK's Daily and Sunday Telegraphs to media tycoons the Barclay brothers.