The chairman and chief executive of Independent News & Media, Sir Anthony O'Reilly, is to remain as chief executive of the company but will relinquish the role of chairman to Dr Brian Hillery.

Dr Hillery, who joined the Independent board as a non-executive director last December, is currently chairman of Providence Resources, in which Sir Anthony has a 45 per cent stake. He also acts as chairman of UniCredito Italiano Bank (Ireland).

A former academic and politician, he served as both a TD and Senator while he was also a professor at the Graduate School of Business in UCD.

His appointment follows an undertaking given by Sir Anthony at last year's annual meeting to separate the two roles, following pressure from institutional shareholders.

The announcement, made at yesterday's annual meeting, was welcomed by the Irish Association of Investment Managers (IAIM). "We are very glad that he has fulfilled his commitment to separate the roles," Ms Ann Fitzgerald of the IAIM said.

It is understood that Sir Anthony, who is 68, has committed himself to the chief executive's role for the next five years.

Independent also announced a number of other changes to its board, which has been criticised for both its size and the balance of "insiders" and "outsiders" among its directors.

Sir Anthony said that Mr Hugh Hamilton was stepping down after 32 years as a director, while Mr James Parkinson is also leaving the board, although he will remain chairman of the company's Australian associate, APN, and continue as a consultant to the company.

Sir Anthony also said Mr Dermot Gleeson had not put himself forward for re-election as a non-executive director to avoid any conflict of interest in his role as chairman of AIB.

The company made just one board appointment to replace the three departing directors. It named former Canadian prime minister Mr Brian Mulroney as a new non-executive director.

One of the few questions from the floor came from Mr Brian Norton, a shareholder and an employee of 24 years who left the company as part of the recent controversial redundancy programme. He criticised the company's handling of this issue and asked whether the compulsory route threatened by the company was now policy across the group.

Sir Anthony defended the company's conduct, saying there "had to be a point of resolution".

But he also spoke of the "sea change" in the environment facing the company and noted that "if we are forced to it, in certain cases we will be forced to go the compulsory route".

In a wide-ranging address to shareholders, Sir Anthony also described the company's failed investment in cable company, Chorus, as "a case study in broken promises and over-regulation".

He said the failure of cable to develop in Ireland, compared to the US where it accounts for 45 per cent of broadband delivery, was "a stinging indictment of regulation and the Government of the day in policing the law of the land".