Network Ten (TEN.AU), has announced that it would restructure the composition of its Board of Directors as concerns of competitive disruptions arose recently with the entrance of James Packer and possible co-investor Mr. Lachlan Murdoch into the company.

In a statement issued to the stock exchange, Network Ten said it had decided to make the chairmanship non-executive even before Mr. Packer's purchase of some shares in the company.

With regards to the exit of present chairman Mr. Nick Falloon, the company said: "Board consideration of the appointment of a new chairman would follow at the correct time."

The company also said the company would also expand the number of its directors from eight to ten.

The Australian Competition and Consumer Commission has begun an informal review of Mr. Packer's acquisition as it may hinder the competitiveness in the industry.

Reports indicate that Mr. Packer nearly owns half of Consolidated Media Holdings, which owns half of Fox Sports and a quarter of Foxtel. Mr Murdoch, on the other hand, is a director of News Corp., which partly owns these sports broadcasting companies.

ACCC is investigating whether the share purchases would reduce competition by removing Ten as an effective bidder for television rights for sports. Both the rugby league and Australian rules rights are up for negotiation over the next 18 months, the Sydney Morning Herald said.

In yesterday's announcement, Ten said it would establish ''appropriate board protocols'' over decision-making and access to information to potential conflicts of interest and/or competition law issues on its directors.