# Hipgnosis Songs Fund updates on strategic review

- Link: https://www.directorstalkinterviews.com/hipgnosis-songs-fund-updates-on-strategic-review/4121133911
- Published: 2023-11-23T07:15:24+00:00
- Author: Amilia Stone

Further to the vote against the Company continuing its business as a closed-ended
investment company at the Company’s Annual General Meeting held on 26 October 2023,
the **Hipgnosis Songs Fund Limited** (LON:SONG) Board has announced an update on
the strategic review.

**Update on the Strategic Review**

As part of the Strategic Review, the Board intends to appoint independent advisers
to conduct due diligence on the Company’s assets.

Completion of this due diligence will provide a strong knowledge base from which
the Board will commence a process of identifying and bringing forward alternative
proposals for the future of the Company.

During this period, the Board has requested that Hipgnosis Song Management Limited,
the Company’s Investment Adviser, proposes alternative terms for their future investment
advisory arrangements to the Company.

**Audit Tender**

The Company is currently undertaking an audit tender process for the 31 March 2024
audit. PwC have indicated they will not be participating in the tender. The Company
will confirm the new auditor in due course.

**Service of Claim**

Further to the disclosure in the 2023 Annual Report, on page 100, Hipgnosis Music
Limited (in liquidation since March 2018) has served proceedings against Mr Mercuriadis,
the Investment Adviser and the Company in the English High Court. In summary, Hipgnosis
Music Limited alleges a diversion of business opportunity from Hipgnosis Music Limited(
of which Mr Mercuriadis was previously a director) to the Company and the Investment
Adviser and also alleges that the Company unlawfully assisted Mr Mercuriadis with,
or received, this alleged diversion. Mr Mercuriadis, the Investment Adviser and 
the Company deny such claims and intend to vigorously defend them. The Company is
not insured as to the costs of dealing with this claim.

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