News Corp suspends voting rights for some non-U.S. shareholders
(Reuters) - News Corp suspended half the voting rights of its non-American shareholders to comply with a U.S. law that limits foreign ownership, after the media company found it had breached the rule.
During a company review, News Corp found voting stock held by foreign investors had risen to 36 percent of its Class B common stock, above the 25 percent limit set by the Communications Act of 1934.
To deal with the breach, the company said the suspension of voting rights will remain in place for as long as the company deems it necessary to maintain compliance with U.S. law.
The Murdoch Family Trust and K. Rupert Murdoch have entered into an agreement with the company not to vote or provide voting instructions with respect to a portion of the shares of Class B Common Stock they own during the voting rights suspension period.
News Corp shares closed at $19.39 on Tuesday on the Nasdaq.
(Reporting by Sakthi Prasad, Ranjita Ganesan and Supantha Mukherjee in Bangalore; Editing by Hans-Juergen Peters)
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