BBC's Mike McKay reports on Newcastle's turmoil

The resignations follow the controversial re-appointment of Douglas Hall and Freddy Shepherd, the directors who whipped up a storm of protest earlier in the year by criticising Newcastle fans and ridiculing leading players at the club.

Alan Shearer: described as Mary Poppins

Mr Hall and Mr Shepherd's reinstatement to the main company board has proved highly controversy. Fans have reacted with dismay at the news.

They were forced to resign after newspaper reports claimed that they called star striker Alan Shearer "Mary Poppins" and described Tyneside women as "dogs".

Despite these indiscretions they were re-appointed to the board of the football club in July after they apologised.

The two disgraced directors own a majority share of the football club and have been able to vote themselves back on to the board.

Mr Hall is the son of Sir John Hall, who built up a controlling stake in Newcastle and whose family company, Cameron Hall Developments, still wields significant influence over its affairs.

Couldn't carry on

Freddy Shepherd: disgraced himself but is back at the club

Chairman Denis Cassidy, who only took up the position in July, and non-executive directors John Josephs and Tom Fenton, are all stepping down. They said they could not continue in the current circumstances.

BT Alex Brown, one of the City's largest stockbrokers has ended its association with the club as a result of the boardroom clash.

The move is likely to further damage Newcastle's already tarnished image in the City after a terrible year for the club.

Newcastle United shares fell 3p, or more than 3%, to 95p on the news.

Seeking new recruits

A statement to the London Stock Exchange read: "Newcastle United plc today announced the re-appointment of Douglas Hall and Freddy Shepherd to the board of the company with immediate effect."

Newcastle said that its board would seek to appoint an independent non-executive chairman and a further independent non-executive director as soon as possible.

In the meantime chief executive Freddie Fletcher has taken over the role of acting chairman.