A THIRD Shell board member was ousted yesterday following the publication of an independent report into the oil group's miscalculations of its reserves.

Finance boss Judy Boynton became the third boardroom casualty of the storm that followed the shock 20 per cent downgrade in reserves earlier this year. It has already cost the jobs of chairman Sir Philip Watts and head of exploration and production Walter van de Vijver.

Both men were held responsible for the crisis. An independent report commissioned by Shell censured the men for appearing to be aware that reserves did not meet market rules as long ago as 2001.

Documents disclosed in the report reveal a series of clashes between the men as concerns mounted that oil and gas stocks had been aggressively overbooked during Sir Philip's time as head of exploration and production.

On one occasion, Mr van de Vijver is reported to have written in an e-mail: "I am becoming sick and tired about lying about the extent of our reserves issues."

When staff sent a memo in December seeking full disclosure of the reserves, Mr van de Vijver is quoted in the report as calling for its destruction, saying it was "absolute dynamite" and "not at all what I expected".

Mr van de Vijver issued a statement on April 13 defending his role, saying he raised the issue of possible over-booked reserves promptly with other senior managers. Both men were unavailable for comment.

Ms Boynton, who will maintain an advisory role, has been cleared of any wrongdoing. Shell said her demotion reflected the need for a "strong and robust chief finance officer". The company also said there was no evidence of any financial impropriety in relation to the reserves.

The report, by lawyers Davis Polk and Wardell said the reserves issue was seen by the two men as a "serious and immediate business question" rather than as a "regulatory and disclosure failing".

Other managers had become aware of the debate, but the report said Mr van de Vijver and Sir Philip were uniquely placed to address the reserves issues which were particularly within their expertise and concern.

One analyst described the report as "absolutely mind-blowing", and said it revealed a total breakdown in internal controls.

Bruce Evers, of stockbrokers Investec, said: "It is just a catalogue of disasters for a company of Shell's standing. This should never, ever have happened."

Shell said it accepted the findings in full and was seeking to re-establish confidence in the company, which lost 16 per cent of its value in the weeks following the downgrade.