The Dunedin City Council has sacked the board that runs its subsidiary companies.
The council held a news conference early on Tuesday afternoon to announce that the Dunedin City Holdings board will be replaced by an interim three-person group chaired by an Auckland-based director, Denham Shale.
Dunedin City Holdings runs the council's main company assets, Aurora Energy, Delta Services and City Forests.
The group has been chaired by a councillor, Paul Hudson, whom mayor Dave Cull has heavily criticised for a lack of transparency and communication.
Mr Cull says the old board had to go.
"All institutions from time to time require refreshing," he says, "and what might have been appropriate 10-15 years ago may no longer be appropriate in the current environment.
"So what we're seeking here is a systemic change."
The new chair has echoed that view.
Mr Shale says the old board had to be removed so the new team has full control to make changes to all the city's companies.
He says the changes are not about personalities, but because the old system of multiple directorships and conflicts of interest was a mistake.
A recent independent review recommended the group's governance be overhauled to prevent multiple directorships and councillors from being on the board.
Mr Cull says two directors from the old board resigned, and the rest have been removed.