A brief message about an investment groups law suit regarding Elisabeth Murdoch joining the news corp board - sent me on a news search.
Found mention of it in a two-day old item from Australia on Corporate Governance Practices - then had to go back to the Spring to find articles about the law suit. (links and excerpts below.)
Guessing that Rupert et al viewed this as worthless as a gnat just needing a little swat to kill it (the law suit). And guessing it isn't in the current set of 'pressing' worries. However, I would also guess that at some point this will also blow-up.
For your reading pleasure - and discussion:
Corporate governance practices in spotlight
July 9, 2011
THE UK phone-hacking scandal that has rocked Rupert Murdoch's global media empire may also force News Corporation to improve its oft-criticised corporate governance record.
As the fallout continued from the News of the World hacking crisis, corporate governance experts said such a ''horrendous'' event was likely to lead to soul-searching within the company.
But with reports that company shareholders would force a showdown with Mr Murdoch at News Corp's annual meeting in October, with The Telegraph suggesting shareholders would attempt to halt the re-election to the board of his son James Murdoch, it appeared the company may also come under external pressure.
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In a structure relatively common in the US, but frowned upon in Britain and Australia, Mr Murdoch is chairman and chief executive of News Corp. Two of his children - James and Lachlan - serve on the board, while daughter Elisabeth will join them in the wake of the company's purchase of her television production company Shine Group.
The March lawsuit, filed by US asset manager Amalgamated Bank, attacks the Shine purchase as unlawful and says it would cause News Corp to ''pay $675 million for nepotism''. News Corp has said the claim is ''meritless''.
Read more: http://www.smh.com.au/business/corporate-governance-practices-in-spotlight-20110708-1h6wb.html#ixzz1RnvZ4eBa
What Lawsuit?
Bank sues News Corp. over purchase of Shine Group
Amalgamated Bank's lawsuit is sparked by Rupert Murdoch's decision to buy Shine Group, his daughter Elisabeth Murdoch's London-based television production company.
March 18, 2011|By Meg James, Los Angeles Times
A New York bank's lawsuit challenging News Corp.'s planned $675-million purchase of Rupert Murdoch's daughter's television company raises a litany of criticisms that have long simmered below the surface of the $33-billion media giant.
"Murdoch historically has operated News Corp. as his own private fiefdom with little or no effective oversight from the board," the 46-page complaint filed Wednesday in Delaware Chancery Court by Amalgamated Bank alleges. The bank, through its funds, owns nearly 1 million shares of News Corp. common stock. It manages $12 billion for institutional firms and public employee pension funds.
Amalgamated's challenge was sparked by Murdoch's decision last month to purchase his daughter Elisabeth Murdoch's London-based television production company Shine Group — at an allegedly inflated value — with the primary reason of bringing her back into the News Corp. fold.
"This is going to be a very interesting case. It will be a wonderful case for professors to teach to their corporate law classes," UCLA law professor Lynn A. Stout said. "What the plaintiffs are alleging is that Rupert Murdoch is using his firm to funnel money to his daughter."
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The lawsuit claimed that the purchase of Shine "provides no material benefits to the company."
read more: http://articles.latimes.com/2011/mar/18/business/la-fi-newscorp-shine-20110318 Generally - this wouldn't mean much. Probably not even a contentious annual share holders meeting. BUT - as we have witnessed in the past week - contexts change - and sometimes even the perceived powerful can't control how it changes. Now? Who knows? Your thoughts?
Now add the latest rumor's (of has it moved to confirmed?) about NoTW bad behavior here in the US - that they tried to pay/bribe NYC policemen(?) to buy cell phones found at ground zero. That would get the disgust rolling here in about no other way that a similar ick factor got things rolling in the UK.
Given the quick mention of the lawsuit (with no link) on the Guardian blog - I would expect that reporters are digging this case up to add to the news feeding frenzy.
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