Newscorp Investors unhappy with the scandal surrounding the company have decided to vote with their feet. They sent a co-signed letter to the 80 year old mogul asking him to resign, from his position as chairman of the giant media organisation to protect the company from further damage.
Rupert Murdoch is seen here with his son James at The leveson Inquiry. Which is an investigation into phone hacking, bribery and political corruption. Although we can't bring you footage of the letter we can quote from it which said ''We believe it is important for News Corporation to uphold the highest standards of corporate governance in order to protect the value of our investment in the UK and subsequent investigations in the UK and the US. They added 'we believe the board is in need of independent leadership." The letter was co-signed by the likes of Insurance Giant Aviva and the Swedish national pension fund.
Rupert Murdoch also revealed the creation of two new companies . Which prompted The board's announcement of its intention to split the company into separate media and publishing arms,"The Inestors letter also felt this development was a unique opportunity for serious governance reform and appointing an new 'independent Chair 'at News Corp and its successor companies will go a 'long way to restoring shareholder confidence.'"
However whilst the letter was in good faith the investors who wrote it only hold 13.4m Class A shares in News Corporation, which gives them fewer rights than their Class B holding counterparts. Which means they are unable to submit a formal motion at the upcoming AGM in October. Which is what really matters.
I am Ann salter thanks for watching. For the latest news and updates follow me on our website at ibtimes.co.uk.
Written and presented by Ann Salter