Alliance Trust faces a stronger opponent in its latest challenge from an activist shareholder than it did in 2011, according to analysts, but a more moderate attack.

The trust is hoping to see off the proposed admittance to its board of three directors nominated by Elliott Advisors, which has a 12per cent stake, and which claims Alliance's corporate governance needs an overhaul.

Numis Securities observes that Alliance will hope to rely on shares held through Alliance Trust Savings, which amount to almost a quarter of the stock. Other key holders are DC Thomson (6.5 per cent), Brewin Dolphin (4.4per cent). Bank of NY Mellon (3.5per cent) and Speirs & Jeffrey (3.3per cent) .

Numis says say Elliott is "a long way from winning the vote" but compared with the campaign waged four years ago by 1.3 per cent holder Laxey Partners, "there is a greater threat from Elliott....due to its larger stake and deeper pockets".

There would also be "no shortage of management groups willing to put forward proposals to manage Alliance Trust, given the potential prize of net assets £3.2bn".

However, Simon Elliott at Winterflood Securities, commented: "We suspect that many shareholders will be struggling to make the link between the appointment of three new non-executive directors and a marked improvement in performance." He said Alliance would probably "point to the recent changes to the investment management team, the subsequent pick-up in performance and the experience and skill set already represented amongst its directors".

Mr Elliott said the proposal for new directors was relatively "friendly", none of the candidates appeared connected to Elliott, and there were no proposals for subsequent strategic reviews. "We suspect this reflects the size of Elliott's shareholding, the nature of the fund's shareholder base, and the lessons learnt from Laxey Partners' tussle with Alliance Trust."