Wellington, Nov 30 NZPA - Four members of the Legal Services Agency board have resigned in the wake of a scathing review into the legal aid system.

Justice Minister Simon Power today said he had accepted the resignations of board chairwoman Carol Durbin and board members Jane Taylor, Alister James and Dr Pare Keiha.

Mr Power has taken action following Dame Margaret Bazley's review, released on Friday, which said the legal aid system was in crisis, with administrative costs out of control and incompetent and unscrupulous lawyers looking after their own interests.

He has cut back the number of board members from six to four and appointed retired High Court judge John Hansen as the new chairman.

The other new appointee is Wellington company director John Spencer. Board members Jane Huria and Ross Tanner, who were appointed in September, continue.

"I'm confident these people have the skills and experience to provide the governance the LSA will need during a period of substantial change," Mr Power said.