Murdoch Prevails Over Protests at News Corp Annual Meeting

For a second year in a row, Rupert Murdoch faced shareholder critics of his News Corporation at the company's annual meeting. And for a second year in a row their proposals for management changes were shot down.

At the meeting, held at the Fox studio lot in Los Angeles, all of the company's 14 proposed board members were elected with more than a majority of the preliminary vote, said Mr. Murdoch, its chairman and chief executive. The shareholders also voted against proposals to eliminate News Corporation's dual-stock structure and to require that its chairman be independent.

Some similar proposals were made last year after a phone-hacking scandal in Britain rocked the company, causing the demise of the 168-year-old newspaper News of the World and resulting in the arrests of dozens of people. But despite protest votes by some major shareholders, the proposals failed to overcome the Murdoch family's control.

The final votes will be reported to the Securitie s and Exchange Commission when tallied.

The phone-hacking scandal has focused intense scrutiny on the company since last year. In his opening remarks, Mr. Murdoch, 81, spoke in contrite tones about its efforts to deal with the fallout and reform.

“We've had to work hard to make amends,” Mr. Murdoch said. “Very hard.”

He described the company's new compliance procedures and noted its clearance last month by Ofcom, the British media regulator, which after an investigation declared the company “fit and proper” to hold a broadcast license. (A separate judicial inquiry has ended its hearings but not delivered a ruling.)

He also said details about News Corporation's planned split into two companies - one for its news and publishing divisions and the other for its more lucrative entertainment properties, like the 20th Century Fox studio and Fox Broadcasting - could be revealed by the end of the year. The company has a current market capitalization of about $59 billion.

Several people representing large shareholders were bluntly critical of the company's management. Julie Tanner, assistant director of socially responsible investing for Christian Brothers Investment Services, proposed (as she did last year) that the company establish an independent chairman.

“The lack of internal controls at the company has had real and lasting repercussions,” Ms. Tanner said. “It has resulted in shuttering a newspaper, criminal investigations, canceled the BSkyB acquisition, eroded public trust, and it has tarnished the company's reputation.”

Other investors, including the California pension funds the California Public Public Employess' Retirement System, or Calpers, and the California State Teachers' Retirement System, or Calstrs, lodged protest votes by not backing the re-election of the full board, whose members include Mr. Murdoch as well as his two sons, Lachlan and James.< /p>

Two new directors were elected: Elaine L. Chao, a former labor secretary under President George W. Bush, and Álvaro Uribe, a former president of Colombia. Mr. Uribe's appointment has been criticized because intelligence forces under his control have been accused of illegal wiretapping of journalists, human rights advocates and others.

Among the other questions Mr. Murdoch fielded was a request to include more left-wing commentary on the editorial page of The Wall Street Journal, which News Corporation owns. “We don't interfere with the editorial page,” he replied.

Despite the complaints about his leadership, Mr. Murdoch noted the company's financial success. Its stock is up about 45 percent over the last year, he said. It closed  on Tuesday up almost 1.7 percent, at $24.77.

Last week, Mr. Murdoch drew criticism for some typically candid statements on his Twitter account, in which he said, “Any shareholders with complaints should take profits a nd sell!” On Tuesday, he made a similar statement.

“When you buy the stock, you know what the company is,” he said. “If you don't like the company, don't buy the stock.”