HSBC HK shareholders mull legal action over dividend suspension
Added 04-06-20 05:03:01am EST - “HSBC shareholders in Hong Kong are considering calling for an extraordinary meeting with management and taking possible legal action against the bank's decision to scrap dividend payments.” - Reuters.com
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HONG KONG (Reuters) - HSBC (HSBA.L) shareholders in Hong Kong are considering calling for an extraordinary meeting with management and taking possible legal action against the bank’s decision to scrap dividend payments.
HSBC and other top British banks on Wednesday announced the suspension of dividend payouts after pressure from the regulator to save their capital as a buffer against expected losses from the new coronavirus crisis.
Founded in Hong Kong about 150 years ago as Hongkong and Shanghai Banking Corp, Europe’s biggest lender by assets has a large number of small shareholders in the city who have long benefited from the bank’s stable dividend payments.
Some of the Hong Kong shareholders have come together and created a dedicated Facebook page, which had more than 3,000 members as of Sunday, to discuss possible action against the London-headquartered bank’s dividend halt.
“At this stage, we must call an EGM (extraordinary general meeting) to let the management explain to us,” H.T. Chan, a 46-year-old retired driver who holds the bank’s stock and is part of the Facebook action group, told Reuters.
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