Top Stories
HSBC board recommends shareholders vote against spin-off resolution
Global Banking & Finance Review®
Company
HONG KONG (Reuters) – HSBC Holdings Plc’s board is unanimous in recommending that shareholders vote against proposals to restructure the bank and pay fixed dividends, its chairman, Mark Tucker, told Hong Kong shareholders on Monday.
HONG KONG (Reuters) – HSBC Holdings Plc’s board is unanimous in recommending that shareholders vote against proposals to restructure the bank and pay fixed dividends, its chairman, Mark Tucker, told Hong Kong shareholders on Monday.
The comment came as Ken Lui, an individual HSBC shareholder and leader of a Hong Kong-based investor group, called for a break up of the bank. His second proposed resolution calls on HSBC to restore pre-COVID-19 dividend levels.
Tucker told the shareholders a restructuring or spin-off of its Asia business, as demanded by Lui, would create a major period of uncertainty for clients, and employees and shareholders would be disrupted.
(Reporting by Selena Li; Editing by Sumeet Chatterjee, Robert Birsel)
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. Dividends can be issued in cash or additional shares.
Corporate governance refers to the systems, principles, and processes by which a company is directed and controlled. It involves balancing the interests of stakeholders.
Restructuring is a corporate management process that reorganizes a company's structure, operations, or finances to improve efficiency and profitability.
Explore more articles in the Top Stories category
