HSBC shareholders in Hong Kong are considering to call for an unprecedented meeting with management and taking possible legal action towards the financial institution’s decision to suspend dividend payments.
HSBC and different top British banks on Wednesday declared the suspension of dividend payouts after stress from the regulator to save their capital as a buffer against anticipated losses from the novel coronavirus pandemic.
Headquartered in Hong Kong for about 150 years in the past as Hongkong and Shanghai Banking Corp, Europe’s largest lender by belongings has a lot of small shareholders in the metropolis who’ve long benefited from the bank’s steady dividend payments.
A number of the Hong Kong shareholders have come collectively and created a devoted Fb web page, which had greater than three,000 members as of Sunday, to debate doable motion in opposition to the London-headquartered financial institution’s dividend halt.
Shareholders of an organization with at the very least 5% of the overall voting rights might require it to convene a rare basic assembly, in keeping with Hong Kong legal guidelines.
As of Sunday, the newly fashioned HSBC Shareholders Alliance in Hong Kong had registered members with mixed possession of about 2% of the financial institution’s inventory, Ken Lui, the convenor of the alliance, instructed reporters on Monday.
HSBC Chief Govt Noel Quinn in a letter to Hong Kong shareholders after the choice to droop the dividend mentioned the financial institution’s board would assess the place as soon as the financial influence of the pandemic was higher understood.