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As the Murdoch #succession battle plays out in a US court,
a separate fight is brewing over control of #News #Corp
Australian and US investment groups take aim at #dual #voting #rights system that
gives family a dominant voice over how empire is run
Australian pension funds and governance groups have criticised the share voting powers that allow Rupert Murdoch to control News Corp,
-- as a secret legal case over the future control of the company is heard in the US state of Nevada.
The push to untangle News Corp’s structure,
which allocates different voting rights according to share type,
️is being driven by agitators trying to loosen the billionaire’s grip over the media empire
and stop that influence being passed to his heirs.
Murdoch has been in Nevada for hearings this week,
after seeking to 
change the terms of a family trust to ensure that his eldest son,
Lachlan, remains in charge of the company’s stack of newspapers and television networks, including the Wall Street Journal and Fox News.
The proceedings prompted the US hedge fund Starboard Value to propose a resolution to eliminate News Corp’s dual class share structure,
-- arguing that the political disagreement in the family
“could be paralyzing to the strategic direction” of News Corp,
according to The New York Times.
Dual structures are commonly used by company founders to retain control of a business even when they have a minority shareholding,
with Murdoch holding 40% of voting rights via a 14% shareholding.
Debby Blakey, the chief executive of the A$86bn Hesta superannuation fund, told Guardian Australia that
“one share, one vote” was fundamental to good corporate governance.
She said the fund’s “engagement, voting and advocacy activities continue to reflect this belief”.
“Hesta remains committed to engaging with companies and using our shareholder votes to drive change that helps create long-term investment value for our members,” Blakey told Guardian Australia.
The Australian Council of Superannuation Investors said it also supported a “one share, one vote” capital structure.
“Voting is a fundamental shareholder right and one of the key ways for shareholders to ensure accountability at listed companies,” ACSI said.
