menu_open
Columnists Actual . Favourites . Archive
We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Murdoch's real-life succession drama is underway in court. What happens next?

10 0
18.09.2024

A unique court case is getting under way in Nevada this week. At stake is the future of the Murdoch empire. The case, which begins on September 17 local time, is scheduled to run (in secret) for two weeks, and sometime after that the Reno Nevada County Probate Commissioner will make what will probably be the biggest decision of their career.

Login or signup to continue reading

The drama centres on a Murdoch family trust that was agreed on in 1999, when Rupert was divorcing Anna. Instead of seeking a larger share of his fortune, she insisted on the setting up of an irrevocable trust, which meant Rupert's four existing children (Prudence, Elisabeth, Lachlan and James) would have one share each after he died. Anna's priority was to secure the long-term futures of the four children and protect them against any future action by Rupert's new wife, Wendi Deng. So, when Rupert later had two children with Wendi, they had equal access to the money, but no power inside the company.

Last November, Rupert initiated legal action to revoke this "irrevocable" trust, to give his chosen successor, Lachlan, full control. His justification was that the viability of the company rests on its right-wing appeal and that the other three might seek to change this.

The move shocked the other three siblings, and reportedly has led to some sharp conflicts. Elisabeth, who had always sought to be the peacemaker in the family, was reported to be particularly angry. There was already irreconcilable conflict between Lachlan and James, who according to several reports have not spoken to each other for five years. It was less clear where Prudence and Elisabeth stood. Now, according to a report in Murdoch's Wall St Journal, they have moved closer to James.

The trust can only be changed if all beneficiaries would benefit. With the other three children contesting the move, Rupert must convince the judge that these three adults of healthy mind and body are not the best judges of what is in their interests, that their wishes should be overridden. Both sides have expensive lawyers, but common sense suggests Rupert faces an uphill battle, and is unlikely to win.

Rupert's preference for Lachlan to be his unchallenged successor is usually attributed to politics. However, Rupert and Lachlan are very different political animals. Rupert was always keen to be a........

© Canberra Times


Get it on Google Play