Updates with share moves, adds sourcing in paragraph 7
March 11 (Reuters) - Australian biotech company PolyNovo PNV.AX said on Tuesday it has removed its CEO after discussions with the executive last week following media allegations about bullying by the firm's chairman directed at its CEO.
Shares of the company fell as much as 7.2% to A$1.165 at 2313 GMT, its lowest level since November 1, 2023.
The Australian newspaper has published a series of reports alleging "bullying" by chairman David Williams against CEO Swami Raote and finance head Jan Gielen.
Raote will be replaced by current non-executive director Robyn Elliot as the acting CEO until a permanent replacement is found.
The company earlier this month said it had held talks with Raote over an agreement for him to leave the firm - a plan that would have seen Elliott step in as interim CEO.
It remains unclear why the board held confidential discussions with the CEO about stepping down. Raote could not immediately be reached for comment.
The Australian reported that PolyNovo's board had engaged barristers Philip Crutchfield KC and Katherine Brazenor in October last year to hold discussions with management team members regarding issues raised about interactions between Williams and some members.
Following interviews with senior staff, Crutchfield and Brazenor recommended Williams step down as chairman, the report added.
(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Tasim Zahid)
((Adwitiya.Srivastava@thomsonreuters.com;))
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