Hipgnosis catalogue sale cancelled as shareholders vote against continuation
The outcome follows the resignation of directors Andrew Wilkinson and Paul Burger on Wednesday (25 October). Chair Andrew Sutch is due to step down next year.
The vote concludes an uncertain period for the embattled trust, which has faced severe criticism from analysts and shareholders over its proposed $440m music catalogue sale and for axing its dividend.
The outcome follows the resignation of directors Andrew Wilkinson and Paul Burger on Wednesday (25 October). Chair Andrew Sutch, who is due to step down next year, ceased to be director after the conclusion of the AGM, as his re-appointment vote did not pass.
As a result of failing the continuation vote, the board will put forward proposals for the reconstruction, reorganisation or winding-up of the trust to shareholders for their approval within six months following the date of today's AGM.
Hipgnosis Songs fails to attract superior offer for music catalogue sale
«These proposals may or may not involve winding-up the company or liquidating all or part of the company's existing portfolio of investments,» the board said.
According to the AGM results, 83.2% of votes cast were against the continuation of Hipgnosis for another five years, which meant the $440m music catalogue sale would not proceed, while 71.5% of votes cast were against directors re-election.
Sylvia Coleman, senior Independent director, said: «The board and the investment adviser have each engaged widely with investors over recent months. While shareholders have not supported our proposed transaction or the continuation vote, it is clear that they share our belief in the inherent quality and potential of these assets.
»The directors are now expediting the appointment of a new chair who will drive the
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