News Corp.’s board of directors will meet in Los Angeles Tuesday in the first face-to-face gathering of its members since an ethics scandal erupted in the media company’s United Kingdom division more than a month ago.
While board members have held frequent conference calls to stay abreast of the widening crisis—which has so far resulted in resignations, arrests, the closure of a newspaper, a scuttled $12 billion deal, and nearly universal condemnation of the company’s practices—tomorrow is the first chance for the group of 16 to test their loyalties in person, and determine what further actions, if any, News Corp. will take to address the scandal.
The boards of most publicly traded companies are elected by shareholders and represent their interests, hiring and firing CEOs and charting strategy; independent directors are brought in from the outside to add perspective and accountability. News Corp., though, employs a dual-class stock structure that concentrates voting power in the hands of chairman and CEO Rupert Murdoch.
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