Martha's board meets to decide her future

The board of Martha Stewart’s company Living Omnimedia was meeting today to discuss life without the guru of domestic perfection, as shares in the company kept up the slide they began last week when she was convicted of fraud.

The directors were to discuss Stewart’s fate, according to a source close to the company.

Stewart stepped down from her role as chief executive and chairman of the board last June after being indicted on charges related to a shares sale in 2001, but remains as chief creative officer and a member of the board.

She was convicted in New York on Friday of conspiracy, making false statements and obstruction of justice in connection with her sale of nearly 4,000 shares of ImClone stock shortly before the biotechnology company announced bad news and the shares plummeted.

With her conviction, the government will likely press to have the dollar billionaire removed from the board, but the big question is how involved will she be, considering she is likely to be jailed.

The board also has to decide to what degree the company will want to sever ties with Stewart, whose name has been tainted with the conviction. The brand is stamped on a wide variety of products, from TV shows to magazines and merchandise.

Investors continued to drive the shares down after dropping 23% on Friday they were down another 7% pin early trading today.