The head of Lines Overseas Management?s audit committee has resigned as a director of the company.

The company did not disclose the reason behind the resignation of Susan D. Wilson, who is also chief executive officer of Masters Ltd.

LOM CFO and Executive VP Malcolm G. Moseley was appointed to the board of directors in December.

An alleged conversation that Ms Wilson had with LOM?s auditor recently came under the microscope as part of LOM?s dispute with the SEC over subpoenas served on managing director Scott Lines in April, 2004 requiring information related to alleged market manipulation of Sedona Software and SHEP Technologies.

The SEC has asserted that its interview with Chartered Public Accountant John Green about that conversation led it to believe that LOM may have destroyed tape recordings requested under the Sedona subpoena, but Mr. Green has since asked to review his testimony as it may have been in error. He said he never testified that ?anyone at LOM holdings or that LOM (Holdings) itself, destroyed any documents or anything.?

Ms Wilson has denied ever having a conversation with Mr. Green in which she suggested that LOM destroyed any telephone tape recordings.

Last week LOM told the US District Court that it had produced ?electronic copies of some of the very tapes that the US Securities and Exchange Commission accused it of destroying?.

Mrs. Wilson?s resignation comes less than a year after company founder Brian Lines resigned as president and and director last summer after 14 years in both posts.

He said the resignation was in the company?s best interests as might improve the company?s ability to resolve the [SEC matter and move forward.?

His father and chairman of LOM Donald Lines assumed the role of president.