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Guardian owner the Scott Trust to be wound up after 72 years

This article is more than 15 years old

The Scott Trust, the ultimate owner of the Guardian and the Observer, is being wound up after 72 years and its assets transferred to a new limited company.

The trust, created in 1936 to protect the legacy of the longstanding editor and former owner of the Guardian, CP Scott, is being replaced by The Scott Trust Limited so that the independence of the Guardian is placed on a "very secure footing for the future"‚ Scott Trust chair Dame Liz Forgan said.

"Over the 72 years of its existence the Scott Trust has periodically re-examined its structure to make sure it is in the best possible shape to guarantee the ongoing independence of the Guardian - the core purpose of the trust," Forgan said.

"The new body has been incorporated in the same spirit as the original trust, it has the same values and goals, and the reorganisation has no effect on the day-to-day management or control of [Guardian Media Group].

"It does, however, renew our commitment to preserve the legacy of CP Scott, further strengthen the protection afforded to GMG and the Guardian, and keep us on a very secure footing for the future."

The decision was taken because like all non-charitable trusts, the Scott Trust has a finite lifespan, unlike limited companies.

The trust transferred ownership of GMG - which controls Guardian News & Media, publisher of MediaGuardian.co.uk, GMG Regional Media, GMG Radio, GMG Property Services and Apax Partner joint ventures Emap and Trader Media Group - to the new parent, The Scott Trust Limited, at the beginning of the month.

All Scott trustees became directors of The Scott Trust Limited, with Dame Liz Forgan as chair.

The current trustees all hold shares in the new company but there was no change to their responsibilities.

GMG's day-to-day operations, control and corporate governance were not affected, with the GMG board retaining "responsibility for direct oversight of the management of the group", the trust said.

In a statement released today it added: "The change has no impact on the amount of tax GMG pays - or will pay in future - under current legislation.

"It does address the hypothetical risk of future changes in inheritance tax law that could, in theory, threaten the Guardian's independence."

Once the restructuring is complete, the Scott Trust will be wound up.

Forgan reassured staff that the core purposes of the Scott Trust has been enshrined in the new company.

The core purpose of the trust is: "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."

Forgan paid tribute to former GMG chairman Paul Myners, who resigned on Friday to become government minister for the City.

"On a separate note, I'd like to thank Paul Myners for his enormous contribution to the success of GMG over the last eight years. Paul has stepped down as chairman of GMG following his appointment to the government as minister for the City, and while we offer him our warmest congratulations the trust is naturally very sorry to lose him," Forgan said.

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