Rinehart Pushes for Board Seat

Mining magnate Gina Rinehart wants a seat at the Fairfax board and she increased her stake to more than 13 percent. This means that Rinehart is now the largest shareholder of the media group. 

As the saga unfolds, the billionaire magnate now has her eyes set on Fairfax chairman Roger Corbett. In her statement, Rinehart said questions are raised over the current chairmanship in line with the 60 percent loss in Fairfax’s market value. 

She added that the media group continues to decrease circulation in all its major titles, which affects revenues. 

Since she has upped her stake in Fairfax, Rinehart has been voicing her discontent as she pushed for board representation. And her pursuit has always been rebuffed by Corbett. 

Macquarie Radio Network owner John Singleton has come to the defense of Rinehart, saying the billionaire magnate is only trying to make her father’s dreams come true. Rinehart is the daughter of mining tycoon Lang Hancock. 

Singleton, a former director of Fairfax, also said that the board is prejudiced against Rinehart. Singleton has known Rinehart since she was a child. 

Corbett, meanwhile, is steadfast in keeping Rinehart away from a board seat. The Fairfax chairman has steered the media group during a time of instability when major shareholders from the Fairfax family was at odds with then chairman Ron Walker. 

The media group, however, continues to face difficulties amid the increasing popularity of the online world.  It has lost as much as $13 billion in advertising revenues as more companies turn to online ad placements. 

Industry observers say that if Rinehart increases her stake to 20-25 percent, the board would have no choice but to give her a board seat.