Rupert Murdock attempts to reassure shareholders

Rupert Murdock told shareholders at the annual general meeting meeting in London that the

appointment of his second son James Murdoch, 30, to CEO at BSkyB does not affect his succession plans at News Corp.

James Murdoch's appointment to CEO at BSkyB, where News Corp is the largest shareholder

with over 35 %, has caused some speculation that James Murdoch could be viewed as a successor to his father at News Corp.

Murdoch , chairman of BSkyB and Sydney-listed News Corp, also said that he had not been involved in the decision to select his son as chief executive: "I can confirm that I refrained from taking any part in the process of selection," he said. "The executive search consultants' short-list

included four external candidates and three internal candidates," he added.

Many shareholders are angered by the appointment of Rupert Murdoch's son, James Murdoch, as CEO last month.

In response to this shareholder unrest,Rupert Murdoch said the board has established a new corporate governance committee to look at what changes, if any, are needed to the make-up of Sky's board and that there will be a review of its remuneration policy.