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I transferred the leader away from a division with only one ship so that I could get that ship out and it is still complaining that i have to put the leader (now in command of another division) on the beach before I can transfer the ship out.

Thanks for the report. Please upload a save and give us steps to reproduce the issue.

Transfer a division commander away to another position. He shows up in red on the division he left and in black in his new job. Then try to transfer the last ship out of the now un-commanded division and you get the error message. If you save and then reload, he no longer shows up in red on the division he left and you can transfer the ships without getting the error message (which is why the save game won't do you any good). If you try to hit end turn and wait until the next turn, the game gives you the option of having a leader randomly assigned to that job or of manually assigning a leader, leaving you in the same position on the next turn; you don't have the option of leaving the position empty. So the only way to empty out a division without losing prestige, apparently, is to transfer the leader away to another job, hit save, close the game, relaunch, and then transfer the last ship out.

Are you running 1.00.40?

When I tried to remove a Division commander, either in the Division screen or the Officer tab, I get the words 'None' highlighted in red.

Yes, the newest version. The issue is trying to take the last ship out of a division after you have transferred the division's commander to another post. The commander's name still appears in the old division, but in red, and the automatic assignment of new officers effectively prevents you from leaving the command of that division empty. If you quit and reload the game, then you get "none" in red.

Ah, just realised - I simply assigned them to the pool (which does automatically clear the unit).

Sending the officer to another Division, on the other hand, does leave their name in red. However, I can clear it by closing and re-opening the Division window.

Thanks, we'll investigate.