The scandal broke last week when it was revealed a court case between the two parties had been initiated over claims made against Hopkins relating to expenses within the $500 million company.

But there have also been counterclaims by Hopkins of bad blood in the company after a whistleblower came forward last year with allegations against him. That led to a forensic investigation of the company books by McGrath Nicol, which was completed recently.

Hopkins resigned from his chief executive role over the weekend but retains a board seat and a significant shareholding in AMA.

“Having resigned as chief executive officer on January 31 and under the terms of Mr Hopkins’ employment contract, Mr Hopkins is required to immediately resign from the board of the company,” the company told the ASX this morning.

“The board expects to receive notice of his resignation from the board forthwith.

“Mr Hopkins resignation (as managing director) follows an independent investigation into his conduct by McGrath Nicol.

“The company has begun a formal process to recover a sum approximating $1 million.”

AMA shares have tumbled since the scandal was exposed last week. Its shares fell from 75 cents to 64 cents this morning.

Meanwhile, AMA appointed Carl Bizon as its chief executive on a salary of $900,000 a year plus incentives. Bizon has been on the board of the company for about a year