News Corp investors should oppose James Murdoch: PIRC - Economic Times

LONDON: News Corp shareholders should vote against the appointment of James Murdoch as a board member at the media group's annual shareholder meeting on Oct. 21, British shareholder advisory firm PIRC said on Tuesday.

PIRC said it was unclear why James Murdoch, deputy chief operating officer at the company run by his father Rupert, had not been quicker to initiate in-depth enquiries into allegations of phone hacking at the group's British newspaper operations.

"PIRC's key governance concerns focus on the position of James Murdoch as a member of the News Corp board and the implications for minority investors of continuing dominance of the company by the Murdoch family," the group, which advises investors on corporate governance issues, said in a newsletter.

Prior to the closure of its News of the World title, the company's response to the scandal had been indecisive, characterised by arrests and resignations rather than dismissals, PIRC said.

"In light of his close association with the phone hacking scandal we are advising shareholders to oppose James Murdoch?s election," it concluded. "We also recommend that shareholders oppose the re-election of a number of other directors due to concerns about independence."

A spokeswoman for News Corp declined to comment on PIRC's recommendations.