News Corp backs down on governance

News Corp agreed to a number of changes to the company’s constitution that would limit the ability of the Murdoch family to consolidate their control of the company. News watered down provisions relating to takeovers, poison pills and super voting shares. The Murdochs cannot increase their current holding beyond the “creep” provisions of Australian corporate law. They cannot sell any percentage of their stake to another person that would give that person more than 19.9 per cent, without the offer being made on equal terms to all shareholders. News has also promised to retain ASX listing rules and not to issue so-called super voting shares unless a majority of all issued shares vote in favour of such changes.

Advertisement