INM Chairman James Osbourne and Chief Financial Officer Donal Buggy have been voted off the Board of Independent News & Media.

Chairman James Osbourne said at the beginning of the AGM "this is my first AGM and may be my last."

He drew the AGM to a close saying "That brings to an end the AGM of not Independent News and Media."

Board member Paul Connolly survives vote

Shareholders voted to reappoint Paul Connolly to the board. Earlier, the company's board had asked shareholders not to support his reappointment.

In April the Board had passed a motion asking stockholders not to approve the re-appointment.

In a statement, Paul Connolly said that shareholders had today strongly backed his re-election to the Board, despite the recommendation.

He said he was very grateful for the level of support shown to him from across the whole shareholder base and that he looked forward to supporting the new Chief Executive and his management team in creating a new and stronger INM.

Mr Connolly, who is a representative of Independent's biggest shareholder Denis O'Brien, is currently taking a legal action against Independent News & Media over the exit package of €1.87m which was paid to Mr O'Reilly.

Dermot Desmond's view

A representative of Dermot Desmond earlier said that Mr Desmond was voting against re-election of directors with the exception of Paul Connolly.

The representative attacked the payment of €1.9m to outgoing CEO Gavin O'Reilly.

Outgoing INM chairman James Osbourne had defended the payment of €1.9m to departing CEO Gavin O'Reilly.

Mr Osbourne said the payment was designed so Mr O'Reilly would drop claims against the company.

Cost cutting impact revealed

Independent News & Media is to close its head office and London office, outgoing INM CEO Vincent Crowley told the company's AGM today.

The Sunday World redundancy scheme has also been fully subscribed.

Other Board changes

Lothar Lanz, a non executive director of Independent News & Media, resigned just two days before the company's AGM.

Mr Lanz is chief financial officer and chief operating officer of Germany's largest publisher Axel Springer.

On Wednesday, Dermot Desmond's investment vehicle IIU increased its stake in the company to 6.36% up from 5.75%.