HSBC shareholders mull action after dividend payout scrapped

British regulators earlier told the bank to preserve capital as buffers.

HSBC’s Hong Kong-based shareholders are calling for an extraordinary general meeting (EGM) and considering legal action after the bank suspended dividend payments, reports Reuters.

Some of the shareholders have created a Facebook page to discuss possible action.

According to Hong Kong laws, shareholders with at least 5% of the total voting rights may require a company to hold an EGM.

CEO Noel Quinn told the shareholders in a letter that the bank’s board would review the position once the economic impact of the pandemic was better understood.

HSBC and other major British banks have announced that they are scrapping dividend payouts after regulators told them to preserve capital as a buffer against expected losses due to the coronavirus.

Here’s more from Reuters.

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