Protest vote hits James Murdoch at BSkyB AGM

A total of 18.76 per cent, or about 255 million votes, were against him because of his links to the News of the World phone-hacking affair. A further 105 million votes were withheld as abstentions and 81.24 per cent - or 1.1 billion - backed him.

There had been calls for him to resign his role amid fears that his connection to the inquiry at News Corporation will damage BSkyB's reputation. At today's annual general meeting, deputy chairman Nicholas Ferguson took questions about Mr Murdoch's role, prefacing them with a strong defence of his chairmanship.

He said: "He runs an excellent board. Discussions are open and frank, his chairing is very good. He has put in place strong governance procedures. He has a strong strategic view."

Asked if the select committee hearings about phone hacking at the News of the World cast doubt either on Mr Murdoch's honesty or competence, Mr Ferguson said: "We've worked with James for eight years, James is a highly competent man. As for honesty, we've seen nothing that makes us question his honesty."

This year's result compares to last year, when 98.21 per cent voted for Murdoch as chairman. Once News Corp's votes are discounted, almost 45 per cent of independent shareholders voted against or abstained.

Labour MP Chris Bryant, who attended the AGM, said: "They are pretty stark figures and this is before any criminal charges have been brought. I predict he won't be chairman this time next year."

Tom Watson, another Labour MP and fierce critic, said of the result: "That's a lot worse than I was expecting and I suspect a lot worse than Sky were expecting."

Mr Murdoch shrugged off the protest vote. He told shareholders: "We hope to see you next year."

Earlier, he told the AGM: "We can be pleased with our company's excellent financial performance. So long as I can depend on your support, I continue to do so."

But Mr Murdoch faced a chorus of hostile questions from some shareholders. Guy Jubb, head of governance at insurance giant Standard Life, a leading shareholder, told the meeting his firm had voted against Mr Murdoch's re-election. Mr Jubb said: "We are deeply disappointed that not one of the non-executive directors thinks it is inappropriate for Mr Murdoch to chair the board."