Shareholders in Hipgnosis Songs (SONG ) have have given near unanimous suppport to a special resolution that will see the royalties fund contribute up to £20m for any prospective bidder’s due diligence costs.

A stock exchange notice showed that 99.9% of voting shareholders approved the proposed amendment to the company’s articles at an extraordinary general meeting on Wednesday while 0.1% voted against. Just over two-thirds of investors participated.

‘The board would like to thank shareholders for their continuing support, as evidenced by 99.9% of votes cast in favour of the amendment to the articles,’ said

Robert Naylor, SONG’s new chair, who previously headed the board of rival Round Hill Music Royalty (RHM ) which was taken private last year, thanked shareholders for their support.

The passing of the vote gives the board more room for manoeuvre as it assesses the investment company’s options after shareholders voted against its continuation and blocked a proposed sale of a fifth of its 65,000 song portfolio to another fund run by its investment manager, Blackstone-owned Hipgnosis Song Management, in October.  

‘The board remains focused on the strategic review, under which it is looking at all options to deliver shareholder value. The board will update shareholders as to the outcome of due diligence in due course,’ Naylor said.

The shares inched up 0.1% to close at 65.2p yesterday, a 53% discount to net asset value, according to broker Deutsche Numis.

The offer of £20m costs is designed to counteract the right HSM has to buy the portfolio for at least fair value within six months of its contract being terminated. This state of affairs was viewed by investors and the board as a conflict of interest that could have deterred bidders and undermined attempts to improve shareholder value.