Conroy warns Rinehart on Fairfax bid

Communications Minister Stephen Conroy has warned Gina Rinehart not to trash the Fairfax Media brand for other shareholders.

Rinehart is reportedly seeking three seats on the media company board after she recently increased her stake to 18.67%.

Conroy says the mining magnate is entitled to representation on the Fairfax board.

“What she’s not entitled to do is trash the brand for all the other shareholders,” he told ABC radio.

Conroy said an independent charter of editorial independence had been supported over many years by the company’s board.

“If she was to directly interfere and breach that charter it would actually lead to a crisis of confidence among the readership,” he said.

“If the readership deserted then the share price for every shareholder would decline.”

This article first appeared on SmartCompany.