James Murdoch set to face attack from BSkyB shareholders

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Sydney, Nov 1: Media tycoon Rupert Murdoch’s son James Murdoch is likely to face the shareholders ire at BskyB’s annual meeting after a British telecoms watchdog called his ‘competence’ and ‘attitude’ into question.

Murdoch has earlier stepped down as BSkyB chairman amid the News International phone-hacking scandal, but he remained on as non-executive director of the firm.

According to News.com.au, shareholder group Pensions Investment Research Consultants (PIRC) has urged shareholders to vote against his re-appointment in the wake of the criticisms leveled at Murdoch by communications regulator Ofcom.

Murdoch is not considered to be independent as his father Rupert Murdoch is the ultimate controlling shareholder through News Corporation, the group said.

“Although Ofcom stated that the evidence available to date did not provide a reasonable basis to conclude that James Murdoch deliberately engaged in any wrongdoing, it was severely critical of him,” PIRC said in a statement.

According to the report, Ofcom hit out at Murdoch’s failure to uncover problems at News International earlier during its review of Sky’s broadcasting licence in the wake of the phone hacking allegations.

The regulator determined that BSkyB was ‘fit and proper’ to hold a licence, but Murdoch was spared no criticism in its concluding report.

“We consider that the events set out above raise questions regarding James Murdoch’s competence in the handling of these matters and his attitude towards the possibility of wrongdoing in the companies for which he was responsible,” Ofcom said.

According to the report, PIRC, investment campaigners FairPensions have called for Murdoch to resign in light of Ofcom’s comments. (ANI)