Pension funds should consider BSkyB investment in Murdoch vote – Bryant

Shadow borders minister Chris Bryant pointed to the power of TV watchdog Ofcom to take directors' suitability into account in deciding whether companies should have broadcasting licenses.

The call is on the back of allegations, denied by Murdoch, he knew about the use of private investigators by former News of the World journalists to listen to various people's telephone voicemails, in order to obtain stories.

And BSkyB shareholders have faced calls to oust the chairman at the company's annual general meeting next Tuesday (November 29, 2011).

In an email seen by PensionsWeek.com, Bryant says: "I am deeply concerned the re-election of James Murdoch as chairman would do serious damage to BSkyB and to the overall reputation of the UK’s standards of corporate governance...

"You are probably aware, too, that Ofcom can take account of a number of factors when considering the ‘fit and proper’ question in relation to BSkyB’s broadcasting license, including the role of ‘controlling directors’...

"Sadly, the BSkyB board has made a misjudgment in not asking James Murdoch to step down, which is why it is vital that institutional investors, who are stewards of the savings of millions of ordinary members of the public, take a responsible position on this issue."

Murdoch has stepped down as director of News Group Newspapers and Times Newspapers Ltd, which between them publish a number of UK news titles including The Sun, The Times and Sunday Times, but he is not expected to voluntarily do the same at BSkyB.