Billionaire Gina Rinehart has called on Fairfax chairman Roger Corbett to resign if he fails to turn around the company’s ailing share price, revenue and circulation by November.

In an open letter on Friday, Fairfax Media’s largest shareholder criticises Mr Corbett’s performance over the past five years.

She says the pair have differed profoundly over saving the business, not the media organisation’s much-touted charter of editorial independence.

It comes two days after Mr Corbett knocked back a request from Mrs Rinehart for a board seat, saying the board could not reach agreement with her on the issue of Fairfax’s editorial independence and other board governance principles.

Fairfax says if Mrs Rinehart wants to obtain editorial control she must pay for it.

Mrs Rinehart already holds about 18 per cent of Fairfax stock and she is seeking as many as three board seats.

The battle between Fairfax’s chairman and its largest shareholder comes as the company undergoes a massive restructure, involving 1,900 job losses, the closure of printing presses and a focus on digital publishing.

Mrs Rinehart has proposed that Mr Corbett agree to a “performance milestone” of achieving a share price of 87 cents per share prior to the company’s annual general meeting (AGM) in November.

“To limit the loss under your chairmanship to 50 per cent is not an unreasonable expectation,” Mrs Rinehart writes.

“If the five year decline in paid circulation and in revenue of the Fairfax mastheads do not reverse prior to the 2012 AGM, we ask that you tender your resignation at that meeting.”

She also notes that Mr Corbett holds just 0.004 per cent of the company’s stock.

On Friday the company’s shares closed 2.8 per cent higher at 55.5 cents.

In a statement on Friday, Fairfax Media said if Mrs Rinehart wanted control of the ailing company, she must make a takeover bid for it.

“Contrary to Mrs Rinehart’s repeated assertions that this isn’t about editorial control, it is,” the company said.

“It is also about her obtaining control of the company and not paying a premium.

“Mrs Rinehart’s letter today has once and for all unmasked her motives for her continual attacks on the company and its board.”

The Fairfax board said it stands behind its governance principles and the charter of editorial independence which underpinned the credibility of its mastheads.

Fairfax said all media stocks had been affected by global structural and cyclical forces.

Existing directors are keen for Mrs Rinehart to sign a charter of editorial independence before any offer of a board position is made.

On Monday Mrs Rinehart’s company Hancock Prospecting Pty Ltd (HPPL) said unless Fairfax offers her board positions without “unsuitable conditions,” she would be unable to assist Fairfax at this time.

“Hancock Prospecting may hence sell its interest, and may consider repurchasing at some other time,” HPPL said in a statement.