Lord Black has handed over day-to-day control of Hollinger International, the US firm which owns the Telegraph.

The move follows revelations that executives received more than £17 million in payments without the knowledge of the board.

He is expected to repay £4 million in a bid to save his publishing empire.

Three senior bosses are to be removed and an emergency board meeting has sanctioned the possible sale of some titles or a break up of the firm.

The revelation could also lead to a full-scale investigation by the US Securities and Exchange Commission and may prompt class action by shareholders.