Blackham said Gutnick had failed to attend a board meeting since November 13 and under its constitution, a director automatically vacated office if they did not attend a board meeting for six months without the approval of other directors.

Blackham managing director Bryan Dixon has been appointed as executive chairman.

The company said that although Gutnick had been immediately removed as chairman, it was seeking legal advice as to whether he remained a director.

"The board, excluding Mr Gutnick, no longer have confidence in Mr Gutnick to perform his duties in the best interests of the shareholders of the company," Blackham said.

Gutnick was appointed chairman in February 2013 after his company Great Central Gold took a stake in Blackham through a convertible note deed of subscription.

Blackham said Great Central had been in default of the deed since April with $A6 million outstanding.

The company filed a writ of summons yesterday against Great Central for alleged damages due to the breach of the note deed and against Great Central and Gutnick for alleged misleading and deceptive conduct in trade or commerce in respect of the note deed.

Blackham reserved its rights to terminate the note deed.

Great Central directly holds just 0.01% of Blackham or just 8000 shares.

Without notifying Blackham's board, Great Central sold 15.88 million shares to Perfectus Management in May as Blackham was completing a capital raising.

Perfectus Management is believed to be owned 49% by new Blackham shareholder Polo Resources and 49% indirectly by Gutnick.

On Blackham's register, Perfectus holds 13.5% and Polo holds 4.04% but a substantial holder notice lodged this month listed Polo's stake as 17.6%.

Blackham was forced to deny takeover speculation last week after a media report suggested Polo was going to make a takeover bid.

Blackham's equal largest shareholder holding 13.5% is Mazil, of which Gutnick is a director and shareholder.

The company confirmed it had received a requisition notice from Mazil seeking a meeting of shareholders to vote on the removal of Dixon and fellow directors Greg Miles and Alan Thom.

Mazil is seeking to appoint Ian Daymond and Stuart Munroe as directors.

Blackham is currently receiving legal advice.

The company said it had received strong interest from debt and equity providers regarding funding for its Matilda gold project in Western Australia after acquiring the Wiluna plant, power station, camp and infrastructure in March.

A 2012 scoping study envisaged capital costs of about $10 million if processing via Wiluna.

Since then, the Matilda resource has continued to grow to 4.3 million ounces.

Blackham said that once it obtained funding, it could be in production within 15 months.

Shares in Blackham fell 4.5% to 21c.