Vehicles Licensing Board following Supreme Court decisions that the board had acted beyond its powers.

Mr. Bailey's removal from the board, and that of two other board members, was executed by Transport Minister the Hon. Ralph Marshall.

It followed orders from Chief Justice the Hon. Sir James Astwood, who in March agreed with two lawsuits charging that the board had been unfair in handling competing licence applications to operate an airport limousine service.

"There were quite a few potential conflicts of interest in respect to the airport limousine issue,'' Mr. Marshall said yesterday. "I had to make some changes in order that we could get a quorum. We'll leave it in place until the end of the year, when boards are reappointed anyway.'' Mrs. Jo-Carol Robinson, a lawyer who was appointed to the board for the first time in February, is to replace Mr. Bailey as chairman.

Mr. del Monte Davis and Mr. Robert Jack -- who has served on the board once before -- were made members to replace Mr. Erwin Lightbourne and Mr. Hadley Woolridge. A third new member, Mr. John Leslie Brunson, was also appointed.

Mr. Marshall said no claims of bias have been made against Mr. Lightbourne and Mr. Woolridge. But he pointed out that the two men are taxi drivers. "There's nothing against those two men at all,'' he said. "It's just that there's a conflict there, and we had to make some adjustments.'' In the wake of Sir James' rulings in March, Mr. Marshall declared that the board had been tainted. He indicated the issue would be brought before his Cabinet colleagues and that dissolution of its membership was a strong possibility.

The court orders, which directed the board to hold a new hearing on the licence application, were based on uncontested suits that the board had an appearance of bias in handling two companies' applications for the right to operate a limousine service, currently owned by Bermuda Aviation Services (BAS).

The two applicants were Bermuda Hosts Ltd. and Bee Line Transport Limited.

In January, the board granted the licence to Bermuda Hosts instead of Bee Line. Shortly thereafter, lawsuits were filed against the board.

The suits pointed out, among other things, that Mr. Bailey, who had chaired some meetings on the licence transfer, was a partner in the law firm of Richards, Francis & Francis whose general manager, Mr. Wayne Furbert, was a Bermuda Hosts shareholder.

The firm also provided legal representation to Bermuda Hosts.

Without taking back Bermuda Hosts' licence, Sir James ordered a new hearing on the issue. It is to take place on April 27.

Mr. Saul Froomkin, who is Bee Line's lawyer, on Thursday said Bee Line would apply for a permit. If the company is granted a licence, it will immediately proceed with a prior agreement to buy BAS's limousine fleet.

"We've got an enforceable agreement on that,'' Mr. Froomkin said.