Selection of Steve White, who now faces modernising divided federation, follows threats of intervention from Theresa May

The new leader of the embattled Police Federation, ordered by the government to modernise, has been decided by the toss of a coin after the selection committee was evenly split between the two candidates.

Steve White was chosen as chair of the federation after a private meeting of the 30-strong joint central committee on Friday morning. It split straight down the middle, with 15 votes for White, seen as a leading voice for modernising the organisation, and 15 for his challenger, Will Riches.

Because the vote was tied, the leader of the organisation representing 126,000 rank-and-file officers in England and Wales was decided by the toss of a coin. Some will see it as a metaphor for the division and arcane practices plaguing the federation, which is facing the threat of government intervention if it fails to enact root-and-branch reforms.

The tied vote led to the treasurer, Martyn Mordecai, producing a coin from his pocket. Riches was invited to call, and called heads. But the coin landed on tails making White the winner.

In the days leading up to the vote, there had been intense back-room activity. The unofficial estimates had swung between the two candidates and late on Thursday some unofficial estimates​ had Riches ahead.

The election of White, as narrow as it was, caps a good week for modernisers in the federation. At their annual conference this week they voted for radical reforms after a withering attack on them by the home secretary, Theresa May, which stunned delegates.

The federation is reeling from allegations of bullying and secret multimillion-pound bank accounts.

A critical independent review, chaired by Sir David Normington, in the wake of the Plebgate scandal raised questions about the conduct of some of the federation's representatives and showed officers to be disenchanted with the body supposed to represent them.

White was the federation's vice-chair and an officer from Avon and Somerset. In his election address he wrote: "There is no doubt that trust in the Police Federation has been severely damaged over recent months. If we think otherwise, then we are doing what the organisation has been repeatedly accused of – burying its head in the sand. Key to building the federation of the future is the rebuilding of trust in us as an organisation."

After the result, he said: "We are all committed to the work needed to implement change to the Police Federation. This is not the end of the road; it is the start of the journey."

On Wednesday at its conference in Bournemouth the federation voted to accept all 36 recommendations for change recommended by the Normington review. Delegates also listened to May berate them for being too slow to change and warn that the government would intervene, saying: "The federation was created by an act of parliament and it can be reformed by an act of parliament. If you do not change of your own accord, we will impose change on you."

Riches, the chair of the constables central committee and a Metropolitan police officer, said in his election address he was determined to drive change forward.

The committee he chairs withheld funds after the Normington review was announced last year. That decision was reversed after the outgoing national chair, Steve Williams, apologised. Williams' decision to stand down as chair and retire from the service was linked to allegations he was bullied and called a traitor for trying to push through change.

After May's speech, Riches said the reaction of delegates was one of "shock and bewilderment".

Also elected on Friday as general secretary was Andy Fittes, a Metropolitan police officer, who was unopposed.

The new leadership will have to deal with hammering out the details of the reforms and the weakening of its power announced by May in her speech.

Its automatic right to represent officers has been ended and new recruits will have to opt in to joining and paying fees to the federation. Its accounts will be inspected by the Home Office, including secret "number two accounts" held by local branches alleged to have £35m in reserves.

Also on Friday, Steve Evans was elected as vice-chair and Mordecai was re-elected as treasurer.

Created by parliament in 1919 to represent rank-and-file officers, the federation was intended to stop officers from joining unions with the right to strike.