Leeds president Massimo Cellino has been told he cannot own or run the club by the Football League.
It has re-examined the Italian's conviction for tax offences and decided he does, after all, fail the "fit and proper persons" test.
He has been ordered to resign immediately, although he has 14 days to appeal.
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Cellino was found guilty of tax evasion by an Italian court earlier this year, over the purchase of a yacht by the former Cagliari owner.