"However,this involved a senior manager who ought to have been observing a high standard of equality and diversity practice and who ought to have had a much better understanding of how his actions might be perceived by and may affect a junior colleague."

Ms Szlakowski's lawyer,Josh Bornstein of Maurice Blackburn,said the former AMP executive had not seen the report and would only be permitted to view it under strict supervision and limited legal representation,describing AMP's approach as"unprecedented".

Mr Bornstein also said AMP had"persistently diminished"the harassment.

In a departure statement,Mr Murray said AMP needed to continue its"transformation"under chief executive Franceso De Ferarri with the support and confidence of investors,institutional clients,employees,partners and clients"without distractions".

"The board has made it clear that it has always treated the complaint against Mr Pahari seriously. My view remains that it was dealt with appropriately in 2017."

Debra Hazelton will replace Mr Murray.

Shareholders and investment partners that had lobbied for boardroom change,including the powerful industry super funds represented by the Australian Council of Superannuation Investors (ACSI),and AMP's second-largest shareholder fund manager,Allan Gray,welcomed the resignations.

"I feel these are quite decisive moves on behalf of AMP,"said Allan Gray managing director Simon Mawhinney."I think now is the time we need to give the company some space or latitude and freedom to carry out and execute their strategy and any necessary cultural change."

ACSI chief executive Louise Davidson said investors would continue to engage with AMP to understand how these decisions were made,describing AMP's handling of the crisis as inadequate.

Peter Costello,the chairman of the Future Fund,which is a key investment partner with AMP Capital,said the fund had made it clear to AMP it"expected higher standards."

"We thought at the time,and I think it’s now clear in hindsight that it was the wrong appointment,"said Mr Costello,who also chairs this masthead's owner,Nine Entertainment.

Another AMP shareholder,Vanguard,would not comment on AMP directly,but pointed to a report that detailed its work on pushing for an American company to publish sexual harassment complaints filed by employees after shareholder pressure.

Meanwhile,Liberal MP Tim Wilson and Labor senator Deborah O'Neill,who have both criticised AMP's handling of the crisis,said the company would face questioning at upcoming oversight hearings. The next hearing will be at the Mr Wilson-chaired lower house economics committee on September 10."

Mr Wilson described Mr Murray's resignation as"a beginning".

"Clearly there is something worrying about the culture within AMP,"Mr Wilson said."It is clear AMP have a long way to go before they have a healthier corporate culture."

Ms O'Neill described the resignations as"window dressing for change".