Two directors stood down from Hipgnosis Songs Fund last night ahead of a crunch vote on its future today.
Andrew Wilkinson and Paul Burger resigned amid a shareholder backlash against the leadership after several investors suggested they would vote against their reappointment at the annual general meeting.
Facing the music: Hipgnosis owns the rights to songs by Shakira
Hipgnosis faces two crucial votes – one on its plan to sell around 20pc of its catalogue and another on the ‘continuation’ of the company.
Founded in 2018 by music mogul Merck Mercuriadis, Hipgnosis gives investors the chance to make money from royalties of tracks by famous artists. But it has faced major opposition to its plan to sell 29 catalogues to a Blackstone fund, also run by Mercuriadis, as it looks to boost the share price and shrink its debts.
Critics say that the £362m price for the hits, including songs by Shakira and Rick James, is too low and would not provide the best value for shareholders.
Meanwhile, the continuation vote could seal the fate of the company. Hipgnosis chairman Andrew Sutch, who also has faced the wrath of shareholders, has said he will step down.
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