Godolphin's strangles inquiry has claimed a high-profile scalp after the resignation of Australian managing director Henry Plumptre.
An inquiry into Godolphin's alleged failure to report a case of strangles during John O'Shea's tenure as head trainer has been adjourned until August but Plumptre tendered his resignation after 16 years with the organisation on Monday.
"I have been away for a short period overseas and have had time to reflect on the ongoing issue of strangles that was reported to Racing NSW stewards two months ago," Plumptre said in a statement.
"In view of the fundamental failure to report the issue at the time, it is the best option for Godolphin if I stand down.
"The reputation and integrity of Godolphin is the most important aspect of what we do and this issue has impacted on that reputation."
Plumptre's departure from Godolphin is the latest in the upheaval at the top of the Sheik Mohammed-owned organisation.
O'Shea departed as Godolphin's Australian head trainer in May while international racing manager John Ferguson left the business last month after trainer Saeed bin Suroor revealed deep rifts in the regime in a media interview.
Godolphin will announce a replacement for Plumptre "in the near future".