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The St Luke's founding partner and chairman, Andy Law, and the deputy chairman, Kate Stanners, have resigned following a long-running dispute over the company's future strategy.
The joint managing directors, Neil Henderson and Phil Teer, have won the battle to lead the agency after a bitter row erupted last month (Campaign, 2 February).
The rift centred on divided opinion about opening an overseas office and Law's involvement in the creative media company Artist Network.
The resignations have come following a series of discussions by the St Luke's board made up of Law, Stanners, Henderson, Teer, the finance director, Neil Thompson, and Al Young, the executive creative director.
Law said: 'Although I founded St Luke's, I don't own it. I'm a shareholder like everyone else and it was always meant to survive beyond me. I feel like a dad whose kids have just gone to university.'
Henderson said: 'Andy spent most of his time doing international consulting and writing his book so Phil and I have been running the company since last April.'
St Luke's was set up in 1995 using a co-operative structure, which Henderson defended: 'Our model has been spectacularly robust and a lot of it is conventional. We have a board and they make decisions which are legally binding.'