Rinehart attacks Fairfax Board again

Staff Writer

Gina Rinehart has continued her attack on the Fairfax Board, this time over their lack of 'skin in the game'.

Her comments follow the announcement of Fairfax that they have cut second-half revenue forecast to 8% lower than the same period in 2011.

Rinehart is pushing for two Board seats, and has said that she wants her Network Ten board representative Jack Cowin to sit on the Fairfax board alongside herself.

Cowin has said “She has a number of different options on her plate…….the ball is in Fairfax's court. I think the matter lies with Fairfax and I think at some stage of the game they will come back and say this is what we're prepared to do”

Rinehart, through her private company Hancock Prospecting, has questioned why Fairfax board members have not personally bought more shares in the company recently, saying their behaviour suggests a lack of faith in the company.

Chief Development Officer of Hancock Prospecting, John Klepec, told the Financial Review; “If the chairman and board (of Fairfax) are true believers in the strategy to assist the company, sure they would have a reasonable percentage of their net worth in Fairfax and be taking opportunities to add to this when the opportunity arises. We understand, for instance, that the chairman only has 99.206 shares and has not added to his shareholding".

He went on to say that he believed shareholders with “skin in the game” are best motivated to turn a company around.

John Singleton has subsequently gone on the record as saying he still has an interest in the Fairfax Radio assets (here).

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