ThomasLloyd Energy Impact (TLEI ) has lost its continuation vote and could be wound up less than two years after its launch. The vote result saw a majority of shareholders accept the board’s recommendation to register their protest at the investment trust’s management under Switzerland’s ThomasLloyd Group.

About 58% of votes cast at the shareholder meeting today voted against the fund’s continuation, defying Zurich-based TLG which owns nearly 15% of the shares.

In a statement, the board said 69% of independent shareholders voted against the resolution to carry on with the global renewables fund in which the UK Foreign Office is unusually the largest shareholder with an 18.4% stake.

The board, chaired by Sue Inglis, will now review options for TLEI’s future – it could be relaunched under a new manager if shareholders believe the trust’s emerging markets mandate is important enough to retain.

However, the immediate priority is to complete the re-evaluation of the Indian ‘Rums’ construction project (whose abandonment after cost overuns led to TLEI shares being suspended in April and a damaging row with TLG) and finalise the delayed 2022 results.

‘Shareholders representing a notable majority of the company’s issued share capital, and independent shareholders by a majority of more than two to one (based on shares held), have supported the board by voting against continuation at today’s shareholder meetings,’ said Inglis.

‘The board would like to thank shareholders for their support and giving the board a clear mandate for the way forward. In addition to completing the key workstreams required for lifting the share trading suspension, the board will also now develop proposals for TLEI’s future, consulting and updating shareholders at key stages during this process.’

ThomasLloyd Group has insisted that it acted in the best interests of shareholders and claimed that the suspension of the shares was unnecessary. Citywire has contacted the company but is still waiting for a response.