RAC chairman Jeffrey Rose has been ordered to stand down by the board after he sent a letter to the 12,000 full members of the RAC Club in Pall Mall urging them to support demutualisation of the organisation. His role has been taken over by senior vice-chairman Brian McGivern, who is now operating as acting chairman.

An RAC spokesman said: 'Demutualisation is something that the board reviews from time to time, but Rose sent out this letter without the knowledge or agreement of the executive officers or the board.'

The letter sent out by Rose, who was due to retire in May, told full members they could expect windfall pay-outs of about £20,000 each. This did not include the millions of motorists who, by virtue of using the RAC's services, qualify as associate members.