Rinehart goes to Fairfax shareholders

Hancock Prospecting have sent a letter to Fairfax Media shareholders asking for their support in Gina Rinehart's efforts to gain more seats on the board and an improved performance from the company.

The Australian Shareholders Association (ASA) Chairman Ian Curry told 'The Australian'…

"It's appropriate that she has now communicated with shareholders because they have a very large interest in what her motives are and what she does or doesn't bring to the company."

He said the ASA could support Mrs Rinehart if she stood for board election but wouldn't decide until after the financial results were released on August 23.

They would, however, "think carefully about supporting someone who had a narrow objective to control media assets for an ideological purpose", Mr Curry said.

The letter, which was signed by John Klepec, chief development officer at Hancock Prospecting, called for stricter KPI's to be placed on chairman Roger Corbett and for the Fairfax editorial independence charter to be adjusted so directors have to adhere to it only "by choice".

If financial results continued to be poor, the ASA would also support freezing director fees and executive salaries and bonuses at the November AGM.

Read the full article in The Australian here