News Corporation’s Board of Directors and management are committed to strong corporate governance and sound business practices. According to report which was published on web side of The news corporation in 2005, the Murdoch and his family owned only about 29% of the company. About all of these shares were voting shares, and Rupert Murdoch retained effective control of the companys policies. And in 2006, News Corporation announced its intention to transfer its 38.5 per cent managing interest in DirecTV to open new projects in new field.
The problem for both above company is that under the new British corporate governance code, independent directors are tasked with a prime role in appointing executive directors and succession planning. Mr Murdoch is strongly advised that is to meet with them without other directors being present. And appointments to the board should be made on “merit and objective criteria”, while pay should be set by an independent-minded remuneration committee. So in this way they resolve major problem. Even if James Murdoch, currently running the Hong-Kong based Star TV, had the spectacular track record of Tony Ball or his predecessor, Sam Chisholm, it might be difficult for the independent directors to appoint him. There has been speculation in the financial press that Mr Murdoch might decide to step down from the chairmanship of BSkyB, but even that is not without its problems as the corporate governance code says new chairmen being appointed should be independents.