SHAREHOLDERS have backed a controversial decision to appoint media tycoon Rupert Murdoch's son James as the new chief executive of broadcaster BSkyB.

Despite the vote in favour at the company's annual meeting, BSkyB still faced concerns from investors over the influence of a father and son at the helm.

In his address, Mr Murdoch senior, who is chairman and whose company News Corporation owns 35 per cent of BSkyB, told shareholders he had no involvement in the process for choosing a successor to chief executive Tony Ball.

He said: "I can fully understand the suspicion of possible nepotism with my son as a candidate, not to speak of the salivations of my newspaper competitors.

"So I refrained from taking any part in the process of selection."

In order to address shareholder concerns over corporate governance, Mr Murdoch said he had established a committee to review that area of the business.

The impact on corporate governance following the appointment of 30-year-old James prompted the most number of questions from shareholders.

One institutional shareholder said: "The chairman and chief executive may be the best candidates for the respective roles, but it is the combination of the two individuals on this board that concerns us."