Scott Trust Limited

The Scott Trust Limited is the British company that owns Guardian Media Group and thus The Guardian and The Observer as well as various other media businesses in the UK. In 2008, it replaced the Scott Trust, which had owned the Guardian since 1936.

The Trust is responsible for appointing the editor of The Guardian (and those of the group's other main newspapers) but, apart from enjoining them to continue the paper's editorial policy on "the same lines and in the same spirit as heretofore", it has a policy of not interfering in their decisions. The arrangement tends to give editors a long tenure: for example, last incumbent, Alan Rusbridger, had been there from 1995 until 2015.

The current chair of the Trust is Liz Forgan, a former Director of Programmes at Channel 4 and Managing Director of BBC Radio. She was appointed in November 2003 to fill the vacancy left by the death of Hugo Young. Other trustees include previous Guardian editor Alan Rusbridger, Larry Elliott, Will Hutton, Geraldine Proudler, and one member of the Scott family.

History

1936-1948

The Trust was established in 1936 by John Scott, owner of the Manchester Guardian (as it then was) and the Manchester Evening News. After the deaths in quick succession of his father C. P. Scott and brother Edward, and consequent threat of death duties, John Scott wished to prevent future death duties forcing the closure or sale of the newspapers, and to protect the liberal editorial line of the Guardian from interference by future proprietors. The first and only Chair of the first Trust was John Scott.

1948-2008

The Trust was dissolved and reformed in 1948, as it was thought that the Trust, under the terms of the original Trust Deed, had become liable to tax due to changes in the law. At this time John Scott also gave up his exclusive right to appoint trustees; the trustees would henceforth appoint new members themselves. Five months after the signing of the new Trust Deed, John Scott died. After three years of legal argument, the Inland Revenue gave up its claim for death duty.

The eight initial trustees of the 1948 Trust were all connected with the Manchester Guardian and Evening News, Ltd., and included four of C. P. Scott's grandsons as well as the then editor of the M.G., A. P. Wadsworth. It has become normal practice for a Guardian journalist to be a member of the trust, though he or she is not considered to be a "representative" of the staff, as this may result in a conflict of interests.

In 1992, the Trust identified its central objective as being the following:

"To secure the financial and editorial independence of The Guardian in perpetuity: as a quality national newspaper without party affiliation; remaining faithful to its liberal tradition; as a profit-seeking enterprise managed in an efficient and cost-effective manner."[1]

The Trust sees its main functions as being the following:

The second Trust had five Chairs over its 60 years: Alfred Powell Wadsworth (1948–56), Richard Farquhar Scott (1956–84), Alastair Hetherington (1984–89), Hugo Young (1990–2003) and Liz Forgan.

The Scott Trust Limited: 2008-present

In October 2008 it was announced that the trust was being wound up and its assets transferred to a new limited company named The Scott Trust Limited. The core purpose of the Trust was enshrined in the constitution of the Limited company and "cannot be altered or amended." The new company is barred from paying dividends, and "its constitution has been carefully drafted to ensure that no individual can ever personally benefit from the arrangements."[2]

In February 2010, the Trust Limited announced the sale of its GMG Regional Media arm and its regional print titles to the Trinity Mirror Group. The regional titles comprised the Manchester Evening News and 31 others in the North West and South of England. The sale was finalised on 28 March 2010 and ended the Scott Trust's association with regional newspapers.

Guardian News and Media, a subsidiary of the Scott Trust Limited, reported a loss of £30.9 million for the year to the end of April 2013.[3]

The Scott Trust Limited was "secured for generations to come" after the Guardian Media Group (GMG, a subsidiary company) completed the sale for £619 million of its 50.1% stake in Auto Trader on 4 March 2014. Apax Partners, a venture capital firm, increased its share to become the sole shareholder in the business. The £619 million earned from the sale of Auto Trader adds to the £253.7 million of cash and investments which GMG published in its 2013 annual report. This leaves an investment fund which is likely to be in excess of £850 million to underwrite Guardian losses.[3]

In December 2014, it was announced that Alan Rusbridger, the Guardian editor-in-chief would succeed Forgan as the Chair of the Scott Trust Limited.[4]

The Scott Trust Foundation

Besides the GMG businesses, the Scott Trust has a charitable wing, the Scott Trust Foundation,[5] and oversees the Guardian's archive and education centre.

References

  1. 1 2 Ellis, Gavin (2014). Trust Ownership and the Future of News: Media Moguls and White Knights. London: Palgrave Macmillan. pp. 157–58. ISBN 9781137369437.
  2. ↑ Press Gazette: "Guardian-owning Scott Trust to fold after 72 years"
  3. 1 2 pressgazette.co.uk: "Guardian 'secure for generations to come' after tax-free bonanza of £619m from Auto Trader sale", 4 Mar 2014
  4. ↑ theguardian.com: "Alan Rusbridger to stand down as Guardian editor-in-chief", 10 Dec 2014
  5. ↑ Charity Commission. The Scott Trust Foundation, registered charity no. 1027893.

External links

This article is issued from Wikipedia - version of the Monday, April 11, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.