AMP chairman David Murray has resigned from the board, effective immediately, along with the company’s non-executive director John Fraser.

Also, Boe Pahari, recently appointed as CEO of the company’s investment management arm, AMP Capital, is also stepping down to his previous level.

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The moves come after revolt from some major shareholders. Investors expressed concerns regarding the initial promotion of Pahari despite a previous sexual harassment allegation against him in 2017.

Pahari said: “I have decided to stand down as AMP Capital CEO in the interests of all parties, and to minimise disruption to the business. I am committed to doing everything I can to see this business and our people reach full potential.”

While the board unanimously approved Pahari’s promotion, Murray’s decision to leave is said to reflect the role and accountability as board chairman.

Commenting on the allegations, Murray said: “The Board has made it clear that it has always treated the complaint against Mr Pahari seriously. My view remains that it was dealt with appropriately in 2017 and Mr Pahari was penalised accordingly.

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“However, it is clear to me that, although there is considerable support for our strategy, some shareholders did not consider Mr Pahari’s promotion to AMP Capital CEO to be appropriate.”

Murray is replaced by Debra Hazelton, who has been on the board since June last year. Meanwhile, AMP chief executive Francesco De Ferrari will lead the AMP Capital business on an interim basis.

In February this year, AMP was handed a fine of $5.17m by the Federal Court due to its failure to prevent the unlawful behaviour of some of its financial planners of churning customers into new policies to earn more commissions.

Previously in April 2018, AMP chairman Catherine Brenner resigned amid revelations that the firm charged fees for no service and also misled regulators.