Head teacher Sir Alan Davies has been suspended as the inquiry continues
Children's Secretary Ed Balls has sacked the governors of a secondary school amid claims of illegal staff bonuses.
An interim board will now take over the running of Copland Community School in Wembley, north London.
Brent Council is investigating allegations that up to £1m was paid in bonuses to the school's senior management team over seven years.
Mr Balls said he was "very concerned" about the allegations.
The school's head teacher Sir Alan Davies was paid a bonus of £50,000 two years ago and bonus of £80,000 last year.
He was suspended in April following the council's inquiry.
"Robust governance and management must be established as soon as possible at Copland," said Mr Balls.
"I have considered arguments on all sides very carefully, including representations that opposed Brent Council's application to replace the governing body - but there is no alternative in putting Copland back on track."
Hank Roberts, full-time union representative at the school, said: "We hope the interim board will only last for a short time.
"The staff have suffered, and a lot of time has been taken over this. we would like to return to being a normal school."