Board scrap at Fairfax labelled 'appalling'

Angry shareholders have labelled infighting among the board of Fairfax Media "appalling" and new chairman Roger Corbett admits he is embarrassed by the episode.

Shareholder and former federal Labor senator Chris Schacht earned a round of applause at the newspaper publisher's annual general meeting yesterday when he described the feuding as reminiscent of the "killing fields".

In September, board members and major shareholders John B. Fairfax and son Nicholas sparked a public boardroom stoush by voicing their dissatisfaction with former chairman Ron Walker's tenure at the company.

They said their private company Marinya Media would not support Walker's re-election to the board, and despite the support of Corbett and other board members, Walker eventually announced he would stand down.

Walker accused the Fairfaxes of inappropriate behaviour and harming shareholder value.

He did not attend the meeting in Sydney yesterday.

"One group of directors abusing another director, under any definition, is an appalling performance that has affected our share price, affected the reputation of the company, made us a laughing stock as an international media company," Schacht told the meeting.

Outside the meeting Corbett was asked if he could understand shareholder embarrassment.

"Yes I can, I felt embarrassed myself," he said.

Chief executive Brian McCarthy said Fairfax's underlying earnings in the first four months of the financial year were down 15 per cent on the same period last year.

However, he said advertising revenues were improving each week, with the exception of the financial and employment sectors.

"It has been pretty much across the board and it has been pleasing also in New Zealand, our New Zealand business is coming back as well."

Modest earnings growth is forecast for the second half of the 2010 financial year.

- AAP