Two of the five directors, Mike Coburn and Stuart McLauchlan, resigned rather than being "removed" from Dunedin City Holdings Ltd (DCHL), Dunedin Mayor Dave Cull said.
Mr Cull and Mr Shale fronted a media conference this afternoon, and said the recommendations suggested in the recent Larsen Report would be implemented.
The issue began earlier this year, when it became clear the dividends from the company would fall short of what was expected from the council, the major shareholder.
It sparked a major row between Mr Cull and Cr Paul Hudson, the chairman of DCHL, who was also sacked yesterday from that role.
Mr Cull said Mr Shale and Queenstown-based Bill Baylis, and a third person still to be employed, would take over as directors to implement the restructure.
DCHL recorded a healthy profit and multimillion-dollar dividend to the council in the last financial year, but Mr Cull said the issue was not about the result, but the governance of the group.
