Up to seven more members of the board of trustees at the Priory Federation of Academies are to resign, it has been revealed.
The board has agreed to a complete overhaul over the next three months, which will see a number of senior trustees stand down from their positions.
They will be replaced by new members recruited from local businesses and from financial, legal and educational backgrounds. There will be 13 trustees sitting on the board come September 2012.
The resignations form part of a 25-point action plan laid out by interim chief executive Ian Jones, which was voted on and approved at a meeting of the board last night.
It follows a damning report from the Department for Education which revealed that the federation's former chief executive, Richard Gilliland, had used school cash to buy sex games, home furnishings and Christmas dinner.
However, councillor Christine Talbot, Lincolnshire County Council's representative on the board, had already resigned from her position before the vote was taken.
Existing trustees now have until mid-June to notify the board whether they intend to step down or not seek re-election at the start of the next academic year.
Chairman of the board, Terry Coffey, said: "We are actually going to go far above and beyond what has been required for us by the Education Funding Agency.
"This action plan will deliver best practice across the trust and allow the public to see how their money is being spent.
"The federation did make mistakes in the past and we again apologise unreservedly for that.
"However, the trust now has an opportunity to make a fresh start and over the coming weeks we will be working with staff, students, parents and the local community on measures which we hope will start to restore out good name."
Other points on the action plan include the introduction of new committees, tighter controls and oversight of spending, skills audits and training for all trustees and better consultation with both staff and parents.