Fairfax tell Rinehart ‘no board seats’

Around 5.30 this afternoon Fairfax Media released a public statement saying that they would not be offering Gina Rinehart any board seats with the company. This is despite her being the single largest shareholder of Fairfax.

At the Fairfax Board meeting held this afternoon, the matter was tabled, with directors unaminously voting to reject Rineharts demand for board representation.

The decision is understood to be heavily influenced by Rineharts refusal to sign the Fairfax charter of independence, which all present directors have signed.

Fairfax Media Chairman Roger Corbett said; “I regret that agreement has not been reached for Mrs Rinehart to join the Fairfax Media board of directors. I hope that this might be possible in the future. However, key elements yet to be agreed include acceptance of the charter of editorial independence as it stands and the Fairfax board governance principles as agreed by all existing directors,”  

In a statement earlier today, Rinehart again attacked Fairfax, through her company Hancock Prospecting, saying that she believed the current board clearly required assistance in making the company sustainable.

Hancock Prospecting's chief development officer John Klepec said; “We are certainly in support of journalist integrity and accuracy, these are important principles in journalism, and are keen to support an effective charter to endorse this in the interests of Fairfax Media, assuming one can be agreed."

He went on to say that the current board has "plainly not delivered for the last several years of declining share value".

He said that in order to make Fairfax 'sustainable' required "active consideration" of whether changing the approach to content was necessary to attract readers and revenue. 

This follows Rinehart threatening to sell her 19% stake in the company if three board seats were not forthcoming, read earlier story here.