Up to 300 jobs will be cut by the Royal Cornwall Hospitals Trust

The trust, which faces a �31m shortfall, has been attacked by two teams of financial experts who say funding was handled incompetently.

Rob Yates and Elizabeth-Ann Maldon, who were non-executive members of the board, have stood down.

John Watkinson, formerly chief executive of Bromley NHS Trust, has been appointed as chief executive.

Brian Milstead, the former chief executive, resigned in June saying he took responsibility for the deficit.

No start date has been confirmed for Mr Watkinson.

'Positive action'

An independent auditor earlier this month said he found a lack of proper budget management and control at the trust.

The report backed up the findings of Price Waterhouse Coopers, which said the deficit had been made worse by the board and managers.

In March, it was announced 300 jobs would go at the Royal Cornwall Hospital Trust to try to stem the overspend.

Professor Colin Roberts, the chairman of the trust's board, said that Mr Yates resigned because "he had trouble with the way finances were going".

Mrs Maldon, who had been on the board for nine years, "felt now was a good time to assist in refreshing the board".

He said: "We have taken very positive and speedy action to address the issues in those reports.

"They were for a period up to last April and since then we have appointed a new head of finance and overhauled all our financial processes.

"I am confident that we are now very much on top of the finance situation."