The sacking resulted from a deterioration of the relationship between the Board and it's general manager.

"The board didn't like the changes which were necessary to meet corporate governance guidelines," Mr Davis told The News.

"They did not like the advice that the financial adviser and the general manager were giving to the board to comply with good corporate governance and management of the company."

Mr Davis said he believes that the Co-operative is a good company and should be managed properly.

"There is a point of difference and personality conflict between me and two board members," he said.

"This is a very poor business decision on the board's behalf."

Co-operative chairman, Stan Schofield, said he could not comment on the termination of Mr Davis, as actions before the court prevented any comment.

Mr Schofield told that he was keen to keep matters out of the courts.

He said he had spoken with staff about the difficult times and was looking to the staff to help the Co-operative through.

Mr Davis' termination comes as a result of questions raised about the financial state of the Co-operative.

United Services Union organiser, Rudi Oppitz, said Mr Davis had had his employment terminated as a result of issues raised in a story published by The News and from his (Mr Davis') pursuit of the Co-op's activities, which he said did not comply with Corporations Law and the Co-operatives Act.

"This is not a move to rectify the situation," Mr Oppitz said.

The furore has arisen as a result of the fears by some members of the Co-operative, along with Mr Davis, about the true financial state of the organisation.

Mr Oppitz was critical of the board for not keeping the union informed of the situation.

"When Brian first raised the issue off the accuracy of the accounts, the Board tried to get rid of him," Mr Oppitz said.