An investment trust targeted by a US raider has lashed out at the City watchdog for allowing it to be taken over despite overwhelming opposition from other shareholders.

Impax Environmental Markets chairman Glen Suarez said ‘the peculiarities of the UK regulatory regime and company law’ meant control of the £183million trust was seized by its largest investor Saba Capital, which has around 21 per cent of shares and is run by fund manager Boaz Weinstein. 

At the annual meeting yesterday, five directors were replaced with Saba nominees.

‘Saba, a single minority shareholder, has, effectively taken control due to the peculiarities of the UK regulatory regime and UK company law,’ Suarez said. 

Weinstein fired back, saying there had been ‘a resounding rejection of the status quo’, after directors’ ‘years of disastrous performance’.

It follows a similar coup in April when Saba took control of the Edinburgh Worldwide Investment Trust. The industry is pushing for a change in rules on shareholder voting to stop similar attempts.