Paul Cox has said he resigned as Torquay manager because he was told he would not be paid by the club.
In a statement, Cox said he understood when he was appointed that he would initially be unpaid.
But he added: "Over the following weeks, certain aspects that were agreed were not adhered to."
|The ups and downs of Torquay United|
|2004: Promoted to League One.||2005: Relegated back to League Two.|
|2007: Finish bottom of League Two and relegated to the Conference for the first time in the club's history. New board takes over, including lottery winner Paul Bristow||2008: Lose in Conference play-off semi-final to rivals Exeter City.|
|2009: Return to Football League after winning Conference play-off final.||2010: Paul Bristow dies. Wife Thea takes his place on the board.|
|2011: Lose League Two play-off final to Stevenage.||2012: Finish fifth in League Two, losing to Cheltenham Town in play-off semi-finals.|
|2013: Finish 19th in League Two after manager Martin Ling takes time off because of depression. He is later relieved of his duties and replaced by Alan Knill.||2014: Knill is sacked in January with Torquay bottom of the league, but new boss Chris Hargreaves cannot save the club from relegation|
|2015: Torquay finish 13th in the Conference with Thea Bristow leaving the club and a new board taking over with a vastly-reduced budget.|
"I felt that I was well within my rights to call a meeting and ask for some transparency from the board as to my financial future," Cox added in his statement.
"It was made clear to me that the club would not be in a position to pay me any salary of any kind in the near future, possibly not even this season.
"Having family back home in Nottingham to support, it was with a heavy heart that I then had to make the decision to resign."
Ex-Mansfield manager Cox says he then agreed to discuss a potential deal but that "following further talks it was clear that club was in no position to make any offer of any kind."
Meanwhile, the Gulls, who are 18th in the National League, have have re-signed Durrell Berry.
The 23-year-old full-back made 12 appearances for them before joining Cheltenham, who released him this summer.
And defender Harry Hickford, 20, has joined on a month's loan from MK Dons.