British oil major BP has removed Albert Manifold as chairman less than a year after he took over the role, citing "serious concerns" related to governance standards, oversight and conduct at the company, AFP reported.
The surprise announcement triggered a sharp market reaction, with BP shares falling more than 6 per cent.
"The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action," Amanda Blanc, BP's senior independent director, said in a statement, AFP cited.
The company, however, did not provide specific details regarding the alleged conduct.
BP said board member Ian Tyler has been appointed interim chairman with immediate effect.
Manifold had assumed the role in October last year at a time when BP was shifting its strategy back towards its core oil and gas operations while scaling back investments in clean energy projects.
His departure marks the latest leadership change at the company following the appointment of outsider Meg O'Neill as chief executive in April, with the mandate to implement a broader recovery strategy.
The management team had already faced investor pressure at BP's annual meeting last month after shareholders rejected a proposal aimed at reducing climate-reporting requirements.
Some of the dissatisfaction had also appeared to spill over to Manifold's leadership. While he was elected chairman, he secured support from 82 per cent of shareholders, lower than the near-unanimous backing typically received by directors.
BP had reported a sharp rise in first-quarter profits as crude oil prices climbed amid the conflict in the Middle East.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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