News Corp backs Rupert Murdoch
News Corporation's board has declared its full confidence in Rupert Murdoch's "fitness", insisting he should remain at the helm of the company.
Directors convened a meeting to consider their response to a report by a committee of MPs that found the media mogul was "not a fit person" to run an international company.
In a contentious amendment to the report by the Commons Culture Committee investigating the News of the World phone-hacking scandal, News Corp was censured for its "lack of effective corporate governance".
However after discussing the findings mainly by telephone, the company's board rejected the MPs' conclusion about Mr Murdoch. They said in a statement: "The board of directors of News Corporation met today and announced its full confidence in Rupert Murdoch's fitness and support for his continuing to lead News Corporation into the future as its chairman and CEO.
"The board based its vote of confidence on Rupert Murdoch's vision and leadership in building News Corporation, his ongoing performance as chairman and CEO, and his demonstrated resolve to address the mistakes of the company identified in the select committee's report."
Their backing of the News Corp boss follows rumblings of discontent from some US shareholders keen to see the company distance itself further from the UK phone hacking scandal.
Christian Brothers Investment Services (CBIS), which has a voting stake in News Corp, heaped criticism on the company and the board's support for its chief executive, saying "shareholders have endured enough".
Julie Tanner, assistant director of socially responsible investing at CBIS, said: "News Corp now exemplifies the risks associated with poor corporate governance. The House of Commons Select Committee findings demonstrate the far-reaching impact of News Corp's corporate governance failures."
Meanwhile the chairman of the US Senate Committee on Commerce, Science and Transportation has asked Lord Justice Leveson whether his inquiry into press standards had uncovered any new information suggesting News International's conduct involved US citizens or violated US laws.
Democratic senator Jay Rockefeller, who has sent a letter to the judge, raised questions about the extent of phone hacking at News International parent company News Corporation last summer, when the scandal erupted.
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