Jennifer Campbell recently spoke to Wealth Management about the upcoming legal battle surrounding the Murdoch family trust. Media mogul Rupert Murdoch is reportedly fighting to make his son Lachlan Murdoch the sole inheritor of the voting rights to News Corp and Fox Corp, a move that could be based upon worry that his other children won't retain his conservative values for the media properties. Since 1999, the family trust has stated voting rights would pass down to four of his six children; Lachlan, James, Elisabeth, and Prudence. Changes to the trust can only be made if deemed to be in good faith to benefit the heirs.
“To demonstrate good faith, Murdoch will need to convince the court that he sincerely thinks the amendment is in the best interest of all the trust beneficiaries,” Jennifer tells Wealth Management. “Unless there’s evidence of a lack of good faith, it’s likely that the court will find that the good faith element is satisfied.”
“Proving a lack of good faith is challenging, but it’s possible,” Jennifer shares. She explains that beneficiaries who oppose the amendment may be able to undermine the change if they can prove Rupert will personally benefit if the change is amended, if the motivation is to pit his children against each other, or if there was an undisclosed arrangement between Lachlan and Rupert.
“Murdoch likely will argue that the value of unified, unquestionable, and uncontestable management will offset the diminished value caused by the loss of voting rights,” she continues. “However, it’s uncertain how the court will view that argument.”
Read the full article in Wealth Management:
Murdoch Offspring Set to Battle for Control of Family Empire
