Following is a letter sent to the Financial Times:
Dear Sir/Madam,
It is a welcome sight to see that shareholders have not allowed the governance issue to die at News Corp, after having lost their previous fight over the reappointment of directors in the holding company. Some of those reelected directors are very able media professionals and it is not surprising that many shareholders did not want to risk losing them by voting them off the Board, in order to show their governance displeasure with a no vote.
Nevertheless, Mr. Murdoch's governance credentials and his disdainful treatment of his minority shareholders (which actually hold the majority of the capital in his companies) still need to be addressed.
A full 46% voting against at BskyB may just make him understand that something is up, although the subsequent letter from his independent directors stating that they are surprised that the troubles with another company have ‘strangely’ affected their vote, indicates that obfuscation and distraction appears to be the policy they are following.
Shareholders should keep the pressure on as Rupert Murdoch may come around, short of changing his succession plans, of course. Long live the King!
Onésimo Alvarez-Moro
See article:
Rupert Murdoch suffered his second shareholder protest vote in a month on Friday as British Sky Broadcasting, the UK satellite broadcaster he chairs, narrowly avoided defeat on a controversial share buyback proposal.
Almost 46 per cent of the votes cast on the proposal, which would allow Mr Murdoch's News Corporation to raise its stake in BSkyB from 37 per cent to more than 39 per cent, were against the resolution.
See full Article (paid subscription required)
Also see BSkyB Investors Approve Share Buyback Scheme
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