News Corp says investors reject proposal to end dual class voting structure

NEW YORK (Reuters) – News Corp (NASDAQ:NWSA) said on Wednesday that investors rejected a proposal by activist investor Starboard Value to break the Murdoch family’s grip on the publisher by ending a dual class voting structure.

The company said the hedge fund’s non-binding shareholder resolution fell short of securing the number of votes needed to pass at today’s annual meeting. The Murdoch Family Trust owns more than 40% of the voting shares.

Starboard won support from powerful proxy advisory firms and a number of other investors who argued that good corporate governance dictates each share should have one vote.