--News Corp. shareholders back company's board
--Shareholders reject independent chairman proposal
--CEO Murdoch faces criticism, questions from investors
(Adds details and share price.)
By William Launder
News Corp.'s (NWS, NWSA) shareholders backed the company's
board, including two new nominations, and struck down a proposal to
elect an independent chairman.
Chief Executive and Chairman Rupert Murdoch told shareholders at
News Corp.'s annual meeting that all of the nominated board members
had been approved, based on a preliminary count of shareholder
votes. A final count will be reported in a coming regulatory
filing, News Corp. said.
News Corp. owns Dow Jones & Co., publisher of this newswire
and The Wall Street Journal.
Mr. Murdoch also said a proposal to elect an independent
chairman, which would have stripped him of his dual role as
chairman and chief executive, hadn't passed the shareholders'
vote.
Several proxy advisory firms and investors had called on News
Corp. to nominate an independent chairman. But Mr. Murdoch and his
family control roughly 40% of the voting shares, so it is unlikely
any changes to the board will be approved without the family's
support.
In September, News Corp. nominated former Labor Secretary Elaine
Chao and former Colombian President Alvaro Uribe to join as
directors. Mr. Murdoch's sons, Lachlan and James, also are on the
board.
Mr. Murdoch said News Corp. expects to provide more details by
year end on the planned management and board member appointments
tied to the company's split.
News Corp. said in June that it would spin off its journalism,
publishing and education assets from its faster-growing media and
entertainment businesses. That process is expected to take at least
a year.
Mr. Murdoch, who presided over the annual meeting in Los
Angeles, faced questions and criticism from shareholders about the
company's ethical standards related to the phone-hacking scandal.
In his opening remarks, Mr. Murdoch said "serious wrongdoings" had
occurred at the U.K. newspaper business, and noted steps taken to
improve ethical standards, such as bolstering its compliance
division.
News Corp.'s Class A shares closed 1.7% higher at $24.77; the
shares have gained more than 44% over the last year.
-John Jannarone contributed to this article.
Write to William Launder at william.launder@dowjones.com
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