Lady Black thrown off Hollinger board

BARBARA Amiel, wife of fallen press baron Lord Black, has been banished from the board of Hollinger Inc by an Ontario judge who suggested she served her own interests at the expense of the company's.

Lady Black was given her marching orders along with key lieutenants, co-chief operating officer David Radler and vice president Jack Boultbee by Ontario Superior Court Justice Colin Campbell.

The judge's order came after a Hollinger Inc minority shareholder - Catalyst Fund General Partner I - petitioned the court to have the board purged of all directors with close ties to Black. Justice Campbell partly agreed, sacking Amiel, Boultbee and Radler because of their relationship with Ravelston, a separate holding company controlled by Black.

Ravelston, the vehicle Black is using to try to buy out Hollinger Inc's minority shareholders, holds most of the shares in Hollinger Inc. Amiel, Boultbee and Radler are all Ravelston directors. Last June, Hollinger Inc lent Ravelston C$1.1m (£490,000) without the approval of Hollinger's independent directors.

Although the funds have been repaid, the deal infuriated Catalyst Fund General Partner I, which used it as evidence in its case. Justice Campbell also found the deal suspect.

'In my view, it should have been obvious to the Ravelston directors against whom allegations are made that their continued presence is much more than an appearance of conflict,' he wrote in his judgment.

'The fact that this has not been recognised by the Ravelston directors supports the argument that they are motivated by putting their interests first, not those of the company,' he said.

The judgment is Black's second setback in a week. Four days ago the US Securities and Exchange Commission charged Black and Radler with siphoning funds from Hollinger International, Hollinger Inc's main asset.

Black is charged with receiving payments worth millions of dollars not approved by the boards of Hollinger Inc and its related US company, former Telegraph owner Hollinger International.

Amiel has been the target of fierce criticism, including damning findings in a probe by Hollinger International. Amiel had a 'no-show' job that 'paid her over $1.1m (£600,000) but did not require her to do anything'.