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Scott Trust Limited

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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. In late 2024, the company announced the sale of The Observer to Tortoise Media.[1]

The company 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, the last incumbent, Alan Rusbridger, held the position from 1995 until 2015.

The current chairman of the Scott Trust Board is Ole Jacob Sunde,[2] who replaced Alex Graham in 2021. Other board members include the current editor-in-chief Katharine Viner, Guardian legal affairs correspondent Haroon Siddique who is the journalist director of the board, and one member of the Scott family.[3]

The Scott Trust is a limited partner in GMG Ventures LP, founded in 2017,[4] according to the GMG 2018 annual report, "this £42m venture capital fund is designed to contribute financial returns and to support GMG’s strategy by investing in early stage businesses focused on developing the next generation of media technology".[5]

History

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1936–1948

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The Trust was established in 1936 by John Russell 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 chairman of the first Trust was John Scott.

1948–2008

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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 Guardian, A. P. Wadsworth. It has become normal practice for a Guardian journalist to be a member of the trust, though they are 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:

"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."[6]

The Trust saw its main functions as being the following:

  • "To secure the Trust's own continuity by renewing its membership and by dealing with threats to its existence
  • To monitor the organisation, financial management and overall strategy of the Group, holding the Board accountable for its performance
  • To appoint and 'in extreme circumstances' to dismiss the editors of The Guardian, the Manchester Evening News (and The Observer after its acquisition in 1993)
  • To act as a 'court of appeal' in the event of any dispute between the editorial and managerial sides of the operation."[6]

The second Trust had five Chairmen 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

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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" to strengthen the protection it offers to the Guardian and because [l]ike all non-charitable trusts, and unlike limited companies, the Scott Trust has a finite lifespan.[7] 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."[8]

In February 2010, the company 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.

In 2012 the Scott Trust Limited became a co-founder of the European Press Prize.[9]

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.[10]

The company via 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.[10]

In December 2014, it was announced that Alan Rusbridger, then Guardian editor-in-chief, would succeed Forgan as the chairman of the company in 2016[11] but he unexpectedly announced on 13 May 2016 his resignation as a director.[12]

As of January 2016, the company's funds were £740 million, down from £838.3 million in July 2015.[13]

As of 1 April 2018, the value of the Scott Trust Endowment Fund was £1.01 billion, down slightly from £1.03 billion in 2017.[5]

In 2023, following independent academic research commissioned in 2020 reporting, the trust apologised for the newspaper's founders involvement in transatlantic slavery principally through the cotton trade. It announced a £10 million ten-year programme of restorative justice.[14]

In November 2024, Jonathan Paine was appointed to the board of the Scott Trust. Paine is a former managing director and senior adviser at Rothschild & Co.[15]

Governance

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Scott Trust Limited was incorporated on 24 September 2008 as Scott Place 1001 Limited, and adopted its current name on 3 October 2008; its number is 06706464 and it is a company limited by shares.[16] The Scott Trust Limited is governed according to the articles of association, set up in 2008 and filed at Companies House.[17] The articles say that the board of directors must guard editorial independence. The board appoints itself under article 63, through an appointments committee. Neither workers at the newspapers nor readers participate in voting for board members. Such voting could be allowed with 75% approval of the existing board of directors under article 7.[citation needed]

The Scott Trust Board

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Current members

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Name Joined Position
Ole Jacob Sunde 2015 Chairman of the Scott Trust Limited board (2021–present)
Katharine Viner June 2015 Editor-in-chief, Guardian News and Media (June 2015 – present)
Tracy Corrigan 2022
Margaret Simons 2022
David Olusoga June 2018 Historian, had also been writing for The Guardian
Stuart Proffitt 2015
Vivian Schiller 2015
Russell Scott 2015 Senior Independent Director
Haroon Siddique 2022 Journalist director of the Scott Trust Limited board (2022 – present)
Matthew Ryder 2020
Jonathan Paine 2024

Past members

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Name Position
Alex Graham Chair of the Scott Trust Limited board (2016 – 2021)
Liz Forgan Chair of the Scott Trust (2003 – 2008)
Chair of Scott Trust Limited (2008 – 2016)
Hugo Young Chair of the Scott Trust (1989 – 2003)
Philip Mark Tranter Company Secretary (2012 – 2017)
David Pemsel Chief executive office, Guardian Media Group (June 2015 - January 2020)
Heather Stewart Director, (September 2011 - March 2016)
Nils Pratley Journalist director of the Scott Trust Limited board (2016 – 2022)

[18]

The Guardian Foundation

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Besides the GMG businesses, the company has a charitable wing: The Guardian Foundation[19][20] led by Executive Director Kelly Walls.[21]

References

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  1. ^ "Observer Sold". Retrieved 20 December 2024.
  2. ^ Jackson, Jasper (22 September 2016). "Alex Graham appointed as seventh chair of the Scott Trust". The Guardian. ISSN 0261-3077. Retrieved 28 February 2017.
  3. ^ a b "The Scott Trust board". The Guardian. 26 July 2015. ISSN 0261-3077. Retrieved 28 February 2017.
  4. ^ "About Guardian Media Group". The Guardian. 24 July 2018. Retrieved 25 June 2020.
  5. ^ a b "Guardian Media Group plc (GMG) results for the financial year ended 1 April 2018". The Guardian. 24 July 2018.
  6. ^ a b Ellis, Gavin (2014). Trust Ownership and the Future of News: Media Moguls and White Knights. London: Palgrave Macmillan. pp. 157–58. ISBN 9781137369437.
  7. ^ "Scott Trust updates structure". The Guardian. 8 October 2008. Retrieved 29 July 2019.
  8. ^ Dominic Ponsford (8 October 2008). "Guardian-owning Scott Trust to fold after 72 years". Press Gazette.
  9. ^ "Members". European Press Prize. Retrieved 23 August 2021.
  10. ^ a b "Guardian 'secure for generations to come' after tax-free bonanza of £619 million from Auto Trader sale". Press Gazette. 4 March 2014. Retrieved 29 July 2019.
  11. ^ Jane Martinson (10 December 2014). "Alan Rusbridger to stand down as Guardian editor-in-chief". The Guardian. Retrieved 29 July 2019.
  12. ^ "Former Guardian editor Alan Rusbridger leaves Scott Trust". BBC News. 13 May 2016. Retrieved 29 July 2019.
  13. ^ Martinson, Jane (17 March 2016). "Guardian Media Group to cut 250 jobs in bid to break even within three years". The Guardian.
  14. ^ Mohdin, Aamna (28 March 2023). "Guardian owner apologises for founders' links to transatlantic slavery". The Guardian. Retrieved 28 March 2023.
  15. ^ Warrington, James (13 November 2024). "Guardian owner appoints former Rothschild banker to board amid Observer sale". The Telegraph. ISSN 0307-1235. Retrieved 13 November 2024.
  16. ^ "Company overview for the Scott Trust Limited on Companies House website". Companies House. Retrieved 29 March 2021.
  17. ^ "THE SCOTT TRUST LIMITED: Corporate governance" (PDF). The Guardian. 23 July 2018. Retrieved 5 August 2019.
  18. ^ a b "THE SCOTT TRUST LIMITED - Filing history". Companies House.
  19. ^ "THE GUARDIAN FOUNDATION, registered charity no. 1153865". Charity Commission for England and Wales.
  20. ^ "The Guardian Foundation".
  21. ^ "The Guardian Foundation appoints Kelly Walls as its new executive director". The Guardian. 19 October 2019.

External

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Retrieved from "https://en.wikipedia.org/w/index.php?title=Scott_Trust_Limited&oldid=1264174932"