Consulting Firm Recommends Ouster of Murdoch from News Corp Board

October 11 00:00 2011

New York, October 11 (RainbowNewsLine.com) – An influential consulting firm, Institutional Shareholders Services, has recommended the ouster of Chairman Rupert Murdoch and 12 others, including his two sons, from the board of directors of the media giant News Corp (NYSE: NWS). It is advising that shareholders should vote out the above persons in the light of the phone hacking scandal that is still rocking the media giant.

This advice has come just two weeks before the company’s annual meeting. Calling the debacle a ‘failure of board stewardship,’ the consulting firm said that an overhaul was absolutely essential. The scandal had led the governments in England and the United States to order inquiries into the activities of the company. About 40% of the voting shares of News Corp. are controlled by Murdoch. The annual meeting is scheduled for Oct. 21 in Los Angeles and the board has 15 members.

Several resignations within News Corp. have taken place due to the phone hacking fiasco. Institutional Shareholders Services has described it as “part of a mosaic of failures of board independence, oversight and responsiveness to shareholder concerns stretching back at least to 2004, when the company reincorporated from Australia to Delaware.”

  Categories: