Conrad Black and wife quit board

Conrad Black and wife Barbara Amiel Black stepped down Thursday as directors of Hollinger International, the company that owns the Chicago Sun-Times.

The move by the Blacks severs another tie to the newspaper company they once ruled in imperial style. Conrad Black was ousted as chief executive in late 2003. By leaving the board of directors, he and his wife give up their last remaining voice in the management of the company. Observers noted, though, that they had already been marginalized.

"His resignation is more symbolic than anything. ... Any influence he may have had ended a long time ago," said Gene Fox of Cardinal Capital Management, a shareholder.

A Black spokesman declined comment. But a source close to the one-time media mogul noted he had been effectively barred from running the company, despite his majority voting stake. Black removed himself to focus on "legal issues," the source said.

Those issues include an investigation by the U.S. Department of Justice into Black's conduct as chief executive of Hollinger International. The U.S. Securities and Exchange Commission has already sued Black and a business partner, alleging they defrauded the company of $85 million. Hollinger International seeks $542 million from Black and others in a civil suit, alleging they looted the company by collecting improper fees.

Black faces a raft of other civil suits in the U.S. and Canada, and has filed countersuits against other Hollinger International directors. Black picked the board himself, and many of its high-profile members once ranked among his friends. The board includes former Gov. Jim Thompson and former U.S. Secretary of State Henry Kissinger.

The board was sued for its allegedly lax supervision of Black while he ran the company. In addition to paying millions in management fees to other entities Black controlled, Hollinger International paid Barbara Amiel Black more than $1.3 million over four years, including a salary she received as "vice president, editorial." The company last year described her duties as "euphemisms" for leisure activities.

The Blacks' resignation from the board also means they surrender their last paychecks from the company. As directors, they received $50,000 per year, plus $3,000 for each board meeting they attended.

Also Thursday, a Canadian judge ruled Black must submit to questioning in a probe of his holdings.

Hollinger International shares fell a penny, closing at $9.29 per share.

Contributing: Bloomberg News