In a letter to Australian woolgrowers, Mr Modiano spells out an on-going disagreement with Mr Merriman, during which Mr Modiano had pushed for a vote of no-confidence in Mr Merriman's chairmanship.

But he also spells out serious operational deficiencies within AWI, especially the lack of overall vision, and on-going leaks of internal disputes to the media.

"Leaks continue to flow from within the company," he writes.

"AWI's integrity and ability to press on with urgent change is being seriously compromised.

"For AWI's sake, the perpetrator(s) of this abuse of trust must be uncovered and expelled.

"AWI does need to be more transparent about and better communicate the decisions it makes.

"But while those decisions are being debated, directors should be free to state their opinions amongst themselves without fear of exposure and ridicule."

Mr Modiano also detailed problems with AWI's marketing and its staff.

"Many of its marketing staff are excellent operatives. But the strategic vision or creative aptitude essential to telling our stories is lacking," he writes.

"The team are willing but limited to the scope of what they were hired to do: to provide a service to Woolmark licensees.

"The licence is trapped in a 1960's time-warp, its iconic logo too, and it will take people of courage, insight and flair to make the difference it so badly needs."

Mr Modiano also backs new chief executive Stuart McCullough as the right man to take the company forward, but had some advice for the "well-intentioned" company directors.

"If I have one recommendation to make it is the conception of a process which introduces a wider array of skills to the board," he writes.

* Read Laurence Modiano's letter in full here.