17 Oct 2012

News Corp shareholders reject splitting top jobs

11:59 am on 17 October 2012

Shareholders in News Corporation have rejected splitting Rupert Murdoch's dual role as chairman and chief executive of the media conglomerate.

Corporate governance issues were raised after the phone-hacking scandal at News Corp's newspapers emerged last year, the BBC reports.

Shareholders also rejected a resolution to change the dual classes of stock which give the Murdoch family effective control of the firm.

The family owns about 12% of News Corp but, because of the dual class shareholding structure, has 40% of the voting shares in the company.

News Corp has previously announced plans to split into two companies, separating its broadcasting and publishing businesses, with Mr Murdoch to chair both groups.

Mr Murdoch told shareholders at a meeting in Los Angeles that the split would take time, and that there would be details on the executive leadership and board membership by the end of the year.