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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Investments and investor services

Hipgnosis Songs Fund's future plans in focus, activist appointed to board

After weeks of toing and froing at music royalty specialist Hipgnosis, investors will feel they are owed a fairly straightforward half-year update next week.

Whether they will get it remains to be seen.

In October over 80% of shareholders voted against the continuation of the fund, leaving it with six months to come up with a 'reconstruction, reorganisation or winding-up' proposal.

Most of the board also left and since then it has axed the dividend and announced it is being sued over 'diverting business opportunities'.

A strategic review is also underway and this will get to the heart of the ructions.

In essence, this is the carrying value of the stack of music rights the business owns, which includes mega ega stars Shakira and the Red Hot Chilli Peppers, and whether it overpaid.

An update on what the plans are for the future will be also something most investors will be waiting to hear.

Ahead of the interim results, which are due on Tuesday, 19 December, the trust announced the appointment of veteran activist investor and fund manager Chris Mills as a non-executive director.

In Mills, new chair Robert Naylor is joined on the board with immediate effect by the manager of the North Atlantic Smaller Companies Investment Trust (LSE:NAS) and founder of Harwood Capital, which also runs Oryx International Growth (LSE:OIG) and Rockwood Strategic PLC (LSE:RKW) investment companies.

He also holds directorships at several companies including Martin Gilbert's AssetCo.

Broker Numis said it expects Mills to provide "robust challenge to the manager" Merck Mercuriadis and bring to bear his significant industry experience as the company carries out the review.

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