Shares in music royalty firm Hipgnosis Songs Fund (SONG) have suffered a dramatic fall from grace, now trading at an all-time low of 66p. Its future is in the hands of shareholders who will vote on 26 October on whether the investment trust should continue or be wound up.

Having angered shareholders over the proposed sale of assets at a big discount to a private fund managed by its own adviser, Hipgnosis has now cancelled its dividend to avoid breaching banking covenants after saying it would get less cash than expected for certain royalty payments for the period 2018 to 2022.

Stifel analyst Sachin Saggar told Shares: ‘The continuation vote is likely to be seen by shareholders as a way to get rid of the manager and gain more control rather than a mandate to wind up the company.’

Founder and manager Merck Mercuriadis used his connections in the music industry to rapidly build a portfolio of song royalties. Lots of investors believe he potentially overpaid for assets, leaving Hipgnosis in a fragile state.

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