The body was made up of Dunn, executive chairman Lynton Wilson and former president John Roth, now non-executive vice chairman of the board. It was intended to manage the transition Roth and his successor, according to a company statement.
The company has also announced that Roth will not stand for re-election to the board at the shareholders' meeting on 25 April.
Dunn took control of Nortel at a difficult time. Facing deep losses, the telecommunication and networking infrastructure vendor cut jobs and pulled out of markets.
The losses continued in the fourth quarter of 2001. However the company is predicting a return to profitability in the fourth quarter of this year.
Recently, Nortel's chief financial officer, Terry Hungle, resigned amid claims of potentially improper personal financial transactions.