Murdoch 'unfit to lead News Corp'

[Mr Gently Benevolent]

Then that'd be for stockholders, employees, and clients to say. It's a pointless exercise when some pompous bureaucrat blurts it just to get a rise out of Murdoch.

A Parliamentary Committee's recommendations carry some weight especially with other bureaucratic bodies such as Ofcom.

[mechin]

CEO is an actual working position rather than a symbolic entity so with it comes responsibilities some of which in this case Mr Murdoch has not fulfilled.

The CEO has a responsibility to his board, employees, and the company's investors. I don't see any of these parties significantly impacted by this issue to an extent that Murdoch can be deemed "unfit".

As far as CEO responsibility and oversight, can someone please tell me when former-governor, former-senator, ex-CEO of MF Global and top tier Obama campaign contributor Jon Corzine will face as much media scrutiny for the disaster and fraud at MF Global?

[artjomh]

Then that'd be for stockholders, employees, and clients to say. It's a pointless exercise when some pompous bureaucrat blurts it just to get a rise out of Murdoch.

You are missing the point.

"Fit and proper person" is a legal term in Great Britain and a very important ethical criteria for holding a broadcasting license.

Only News Corp shareholders can decide who is going to be their chairman. However, the government (Ofcom) decides who gets to hold a broadcasting license and the "fit and proper" test is a major part of this.

[Corrupt]

The CEO has a responsibility to his board, employees, and the company's investors. I don't see any of these parties significantly impacted by this issue to an extent that Murdoch can be deemed "unfit".

The closure of a the biggest selling weekly newspaper in the country because it's reputation was irredeemable doesn't count? It cost about £240m to close and ended the employment of about two hundred people, many of whom now have trouble finding work because they are guilty by association.

"Fit and proper person" is a legal term in Great Britain and a very important ethical criteria for holding a broadcasting license.

Only News Corp shareholders can decide who is going to be their chairman. However, the government (Ofcom) decides who gets to hold a broadcasting license and the "fit and proper" test is a major part of this.

Thanks for explaining that so succinctly.

[artjomh]

No problem.

The "fit and proper" test is quite common. For example, here are the FSA honesty and integrity guidelines which determines if a person is fit and proper to hold a broker's license:

(1) whether the person has been convicted of any criminal offence;
(2) whether the person has been the subject of any adverse finding or any settlement in civil proceedings
(3) whether the person has been the subject of, or interviewed in the course of, any existing or previous investigation or disciplinary proceedings
(4) whether the person is or has been the subject of any proceedings of a disciplinary or criminal nature, or has been notified of any potential proceedings or of any investigation which might lead to those proceedings;
(5) whether the person has contravened any of the requirements and standards of the regulatory system or the equivalent standards or requirements of other regulatory authorities (including a previous regulator), clearing houses and exchanges, professional bodies, or government bodies or agencies;
(6) whether the person has been the subject of any justified complaint relating to regulated activities;
(7) whether the person has been involved with a company, partnership or other organisation that has been refused registration, authorisation, membership or a licence to carry out a trade, business or profession, or has had that registration, authorisation, membership or licence revoked, withdrawn or terminated, or has been expelled by a regulatory or government body;
(8) whether, as a result of the removal of the relevant licence, registration or other authority, the person has been refused the right to carry on a trade, business or profession requiring a licence, registration or other authority;
(9) whether the person has been a director, partner, or concerned in the management, of a business that has gone into insolvency, liquidation or administration while the person has been connected with that organisation or within one year of that connection;
(10) whether the person, or any business with which the person has been involved, has been investigated, disciplined, censured or suspended or criticised by a regulatory or professional body, a court or Tribunal, whether publicly or privately;
(11) whether the person has been dismissed, or asked to resign and resigned, from employment or from a position of trust, fiduciary appointment or similar;
(12) whether the person has ever been disqualified from acting as a director or disqualified from acting in any managerial capacity;
(13) whether, in the past, the person has been candid and truthful in all his dealings with any regulatory body and whether the person demonstrates a readiness and willingness to comply with the requirements and standards of the regulatory system and with other legal, regulatory and professional requirements and standards.