The Church Commissioners have written to Rupert Murdoch for the second time this year to express concerns about News Corporation, in which it has an investment of £3.8m.

The letter follows a failed motion by shareholders to elect an independent chairman in place of Rupert Murdoch, who also holds the position of CEO.

Last month, at the News Corporation annual general meeting, the Church Commissioners' Ethical Investment Advisory Group (EIAG) supported a motion from fellow shareholders the Christian Brothers Investment Fund, which asked for the role of chairman and CEO to be split.

The motion was a reaction to this summer’s phone-hacking scandal at News Corporation paper News of the World, which shut down in July at Murdoch’s order.

A member of the EIAG travelled to Los Angeles to speak in support of the motion. However, it was rejected by the majority of shareholders.

A Church Commissioners spokesman would not comment on the contents of the EIAG’s letter to Murdoch. But he told civilsociety.co.uk that the motion failed to go through as 40 per cent of News Corporation is owned by family members, and the other 12 per cent is held by a friend of the Murdochs. 

It is the second time this year that the EIAG has written to Murdoch with concerns following the phone-hacking scandal.

In July, the EIAG wrote a letter threatening to withdraw its £3.8m holding unless he held senior executives to account for the actions of News of the World.

Professor Richard Burridge, deputy chairman of the ethical investment committee, said: "If we don't get a satisfactory answer then disinvestment comes on to the horizon, but you can't go straight to the nuclear option, you have to engage first."

May engage with internet providers over pornography

Elsewhere, the Church Commissioners have said claims by the Daily Mail that the charity is considering withdrawing its investments in Internet Service Providers (ISPs) over the rise of internet porn, is incorrect.

A spokesman told civilsociety.co.uk that the Church’s EIAG was simply reviewing its investment policy, including  investments that may indirectly promote pornography:

“Last July, the EIAG decided to review its investment policy. This included investment in porn in light of the internet. It is reviewing the position of ISPs. If we think there is an issue we will engage with them on this.

"Only as a last resort will we disinvest."