© Reuters. FILE PHOTO: The HSBC logo is seen at a bank branch in the financial district in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid
HONG KONG (Reuters) – HSBC holdings Plc’s (LON:) board unanimously recommends that shareholders vote against proposals to restructure the bank and pay fixed dividends, 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 investment group, called for the bank to be dissolved. The second proposed resolution from him calls on HSBC to restore pre-COVID-19 dividend levels.
Tucker told shareholders that a restructuring or spin-off of its Asia business, as Lui demanded, would create a significant period of uncertainty for customers, and employees and shareholders would be affected.