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HSBC board recommends shareholders vote against spin-off resolution

Published 04/03/2023, 05:31 AM
Updated 04/03/2023, 01:24 PM
© Reuters. FILE PHOTO: HSBC logo is seen on a branch bank in the financial district in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid
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HONG KONG (Reuters) - HSBC Holdings Plc (LON:HSBA)'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.

© Reuters. FILE PHOTO: HSBC logo is seen on a branch bank in the financial district in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid

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.

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