All directors at community-owned landlord to stand down

All of the directors of a community-owned landlord in the Western Isles are to stand down after a review described the running of the organisation as "dire".

Sealladh na Beinne Mòire (SnBM) oversees a number of businesses, and manages the 93,000-acre South Uist Estate.

In November it emerged that a review by Royal Bank of Scotland specialists Mentor had raised concerns around the governance of SnBM.

The directors of South Uist Renewable Energy (Sure), a subsidiary of SnBM, are also to stand down at an extraordinary general meeting (EGM) to be held at a later date.

The move follows a meeting with the islands' local authority Comhairle nan Eilean Siar.

It has been proposed that an interim board is set up, with its members including councillors who represent South Uist, Eriskay and Benbecula.

In a joint statement, SnBM and Sure said: "We feel that putting in place this transitional arrangement is the best way to progress the actions needed to strengthen governance and operations across all parts of the organisation.

"Having an interim board focused on the delivery of these essential actions will leave a good foundation for a new set of directors to come into post and be free to drive forward the strategic vision for the organisation's future."

The organisations said they intended to liaise closely with their lenders and insurers to provide them with assurances changes were happening.

A formal election of directors could take place in June.

In its report last year, Mentor described the governance of SnBM as "simply dire".

It was asked to carry out its review by Sure following the resignation of three directors.