Mr Olsson and another board member, Wal Merriman, a leading NSW finewool Merino breeder, did not attend the meeting.

The Olsson censure resolution read: "The board resolved that it deplores the behaviour of director (Chick) Olsson in misleading and deceiving the board in relation to the comments he made to the Bendigo Advertiser published on September 9, 2008, and by subsequently denying he made those comments at board meetings held on September 18 and October 16, 2008. The board considers this as a serious breach of trust by director Olsson. The board resolved to publicly release this censure resolution."

The motion was supported by the chairman, Brian van Rooyen, and directors, Chris Abell, Kevin Bell, Ken Boundy, Robyn Clubb, Roger Fletcher and John Keniry.

The AWI cannot force Mr Olsson to resign (not without a potentially messy battle) but Mr van Rooyen said most directors faced with a similar situation would "fall on their sword".

At the centre of the row was an article in the Bendigo Advertiser on September 9 which quoted Mr Olsson as follows: "He, van Rooyen, must stand down immediately (as chairman of AWI). And if he does not I will call for him to resign at a board meeting next week. He has called into question the integrity of the board members and imagine how this is viewed by our trading partners."

Mr van Rooyen said Mr Olsson had denied at an AWI board meeting on September 18 that he had made the statements and agreed to seek a retraction from the Bendigo Advertiser.

On October 22 the editor of the Bendigo Advertiser told AWI in writing that the newspaper stood fully by the article.

Mr Olsson was elected to the AWI board in November last year against the wishes of the then chairman, Ian McLachlan, who stepped aside in April and was replaced by his deputy, Brian van Rooyen.

* More on the in-fighting in the wool industry in this week's Rural Press agricultural newspapers.