Horlin-Smith has come under fire in recent months, with both the Australian Securities and Investments Commission (ASIC) and Voice over Internet Protocol specialist Transcom pursuing legal action against the executive.
ASIC has put Horlin-Smith on trial for charges relating to a previous executive role at Norman Wines, while Transcom is suing both Horlin-Smith and Chariot for breach of contract and damages from a business relationship.
Replacing Horlin-Smith in a chief executive officer role will be Chariot chief financial officer and company secretary Garry Hersey, according to a statement sent to the Australian Stock Exchange this morning.
Hersey only joined Chariot on 31 May from interactive entertainment and media group Imagination Entertainment. But the statement added Horlin-Smith would remain a Chariot director and would act as a consultant to the ISP "for an initial period of six months".