After NewsCorp investors staged a revolt at the annual shareholders meeting last week, CEO and founder Rupert Murdoch barely managed to retain control over his company.
The source of the dissatisfaction revolves around the structure of the company, and the Murdoch family's ability to lead the company.
If reports are accurate, things apparently got hot and heavy at a recent News Corp shareholders meeting last week. According to an article in The Sidney Morning Herald, Rupert Murdoch just barely survived a revolt at the annual meeting of investors. At issue, was the Murdoch family control of the company, which sparked widespread displeasure among a large number of stockholders.
The company structure allows the Murdoch family to control around 40 per cent of the company's vote while actually owning 14 per cent of News Corp. In this way, they have been able to keep an iron grip on the company. That has, as the article notes, lead "to accusations it is run more like a family fiefdom than a conventional public company."
One investors at the meeting called it "“fundamentally undemocratic."
"This kind of governing structure may be exactly what we'd expect in Cuba or North Korea, but it is at odds with good governance practices here," Bill Dempsey, chief financial officer of the New York-based Nathan Cummings Foundation, told Mr Murdoch at Friday's meeting
Shareholders proposed that the company's controversial dual-class voting structure be reformed. They proposed scrapping the present structure and replacing it with a one share, one vote system. Although the motion was narrowly defeated, it was a sign that all is not well behind the ramparts of the News Corp fortress.
Notably, even one of the companies key investor, the Saudi Prince Alwaleed bin Talal, (worth an estimated $27 billion) also voted in favor of restructuring the company. It marked the first time in 17 years that Al-Waleed, News Corp's second largest single investor, has voted in opposition of Murdoch.