Investor revolt at Sky AGM

Sky has suffered a twin-pronged shareholder revolt over pay and the re-election of chairman James Murdoch at the company’s annual meeting.

Nearly half of independent shareholders voted to oppose Mr Murdoch’s reappointment amid concerns over his role as chief executive of 21st Century Fox, which wants to seize control of the 61% of Sky it does not already own in an £11.7 billion deal.

Doubts have been expressed over Mr Murdoch’s ability to represent the interests of independent investors due to his dual role.

Almost half of small investors opposed Mr Murdoch’s re-election, although this was an improvement on the more than 50% in opposition last year.

When including Fox’s 39% holding in Sky, 78% of shareholders backed his reappointment.

The broadcaster said in a statement: “The board notes the significant vote against resolution 3, the directors’ remuneration report, and resolution 12, the re-election of James Murdoch, and will continue to engage with shareholders to understand their views as part of its ongoing programme of engagement.”

The takeover tilt by Fox, which is controlled by Rupert Murdoch, has been referred to the UK competition watchdog.