Albion Rovers say they sacked head coach Jim Chapman because of a lack of progress in retaining players.
Jim Chapman was Third Division manager of the month in January
The Coatbridge club's board states that Chapman had been warned three weeks before his departure that a lack of communication put his future in doubt.
Chapman was dismissed "against the background of a deteriorating relationship and uncertainty about squad depth and quality for next term".
He had argued that the Division Three club was making progress under him.
They had improved two places to sixth by the end of this season.
But a board statement on the club website stressed that sacking Chapman had been a unanimous decision following discussions held as far back as October.
"The board fully understands the concerns of true Albion Rovers supporters," said the statement, refuting Chapman's suggestion that the club lacked ambition.
At this time of the year, communication between the head coach and the board is vital
"The club's ambitions remain unchanged and the search for a new manager is already underway.
"An appointment will be made as quickly as possible, but we will not rush into anything."
The board stressed that it had attempted to be supportive of Chapman's requests for improved resources.
However, it pointed out that Chapman had not taken the advice of football director Robert Watt, someone the board believes "has an enviable record in finding and bringing new talent to the club".
"At this time of the year, communication between the head coach and the board is vital, but that has not been conducted to the board's satisfaction despite several attempts by the board to achieve this," the club stated.
Chapman had been prepared to work with a budget "a fraction" of what was available to previous managers and without a salary because of the club's financial problems.
But the board stressed that he had use of a company car and received other payments, including the same bonuses as the players.
"The current board inherited a financial shambles and has worked diligently to bring club finances under control," it added.
"Inherent in that situation were a number of current liabilities which, left unaddressed, would have resulted in the closure of the club.
"These debts are still being paid off and that has limited the funding available on the playing side of the club."