Crikey! That Was Close

Corporate crusader Stephen Mayne makes a tilt at the News Ltd Board and gets closer than anyone expected (well, within 1 billion votes, anyway)

Murdoch Faces The News

Shareholders at News Corporation's annual general meeting have challenged chairman Rupert Murdoch to be more open about how he runs the company. At the meeting in Adelaide, former employee and now corporate commentator Stephen Mayne stood for election as a Newscorp director and opened debate about corporate governance. Mayne failed in his attempt to become a director, but in a vote for remuneration for executive directors, those against nearly equalled those for. In the end the proxy vote pulled the motion through. Mayne says the most powerful man in the world has been told he is accountable to his shareholders. (Source: Nine-MSN)

No More Options For AMP Bosses

AMP took a step to restoring its battered image yesterday by declaring it was responding to "community sentiment" and would no longer issue options to executives and senior employees, including new boss Andrew Mohl. Given AMP's leadership role on such issues, as Australia's biggest investor in its own right, its stance may have sounded the death knell for options issues throughout corporate Australia. Rival Commonwealth Bank started the trend in August by declaring it would no longer issue options. Optus and WMC followed. But, as with CBA, AMP executives will still be able to benefit handsomely from share issues based on performance. (Source: SMH)

Baby Boom On Stock Exchange

The Australian Stock Exchange is having a baby boom of sorts, with Peppercorn Management becoming the third childcare centre operator in little over a month to launch an initial public share offer. Peppercorn this week announced plans to raise $5 million via an offering of 5 million shares at $1 each, giving it a total market capitalisation of $20 million. Peppercorn says the capital raised will enhance the group's expansion plans. It has already tripled the number of centres under its management over the past three years to 178. Peppercorn will be hoping to emulate the performance of Child Care Centres Australia which closed at $2.67 yesterday after listing at $1 on October 2.

ACCC Fails To Shoot The Messenger

The Australian Competition and Consumer Commission has failed in its first direct court action against an advertising agency, with the Federal Court clearing Saatchi & Saatchi of principal responsibility in the development of a misleading advertisement. The ACCC has instigated action against both advertisers and their agencies in the past. Last month, the agency John Bevins was found to be an accessory in the creation of a misleading MBF advertisement. The action against Saatchi & Saatchi, however, was the first alleging that an agency had primary responsibility rather than that of an accessory. (Source: The Age)

Snowy Mountains Hydro Wins $2 Billion Deal

The Snowy Mountains Hydro company is set to become the single biggest foreign investor in Nepal on the back of a $2 billion power plant. SMEC - formerly Snowy Mountains Hydro Electric - had signed a memorandum of understanding to design a 750-megawatt hydro power plant in Nepal. The memorandum is between SMEC and the Power Trading Corporation of India. Under the deal, both Nepal and India will access power from the hydro plant. The West Seti project will be the largest single foreign investment in Nepal and will generate foreign exchange for the country through sale of the energy.(Source: Nine MSN)

PwC Auditors In Prosecutors' Sights

In the US, New York prosecutors are considering criminal charges against PricewaterhouseCoopers LLP auditors who reviewed compensation for the indicted former chief executive of Tyco International. Manhattan District Attorney Robert Morgenthau is examining whether PwC auditors in New York and Boston broke the law when they failed to disclose that a proxy statement didn't include a $US33 million ($A60 million) bonus paid to then chief executive, Dennis Kozlowski. Mr Kozlowski was indicted last month for looting Tyco. Prosecutors are considering using the prospect of an indictment as leverage to persuade the auditors to testify against Mr Kozlowski and other indicted former Tyco executives.( Source: SMH)