HSBC 2001 Annual Report Download - page 277

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Dividends on the ordinary shares of
HSBC Holdings
HSBC Holdings has paid dividends on its ordinary
shares every year without interruption since it
became the HSBC Group holding company by a
scheme of arrangement in 1991. The 75p ordinary
shares and HK$10 ordinary shares were entitled to
equal rights, including the right to a dividend, and all
dividends were declared and paid with respect to
both classes of shares. The dividends declared, per
ordinary share*, for each of the last five years were:
First
Interim
Second
Interim Total
2001 US$.......... 0.190 0.290 0.480
£............... 0.129 0.200 0.329
HK$......... 1.482 2.261 3.743
2000 US$.......... 0.150 0.285 0.435
£............... 0.103 0.191 0.294
HK$......... 1.170 2.223 3.393
1999 US$.......... 0.133 0.207 0.340
£............... 0.081 0.131 0.212
HK$......... 1.033 1.612 2.645
1998 US$.......... 0.123 0.185 0.308
£............... 0.073 0.115 0.188
HK$......... 0.956 1.434 2.390
1997 US$.......... 0.108 0.169 0.277
£............... 0.067 0.100 0.167
HK$......... 0.832 1.308 2.140
* The second interim dividend for 2001 of US$0.29 per
share has been translated into pounds sterling and Hong
Kong dollars at the closing rate on 31 December 2001.
The dividend will be paid on 7 May 2002.
For the year ended 31 December 1997,
dividends on the 75p ordinary shares and the HK$10
ordinary shares were declared in sterling and, at the
shareholder’ s election, paid in either sterling or Hong
Kong dollars, or satisfied by the issue of new shares
in lieu of a cash dividend. In the table above
dividends have been translated into US dollars at the
noon buying rates in New York City for cable
transfers in sterling as certified for customs purposes
by the Federal Reserve Bank of New York for the
dates on which dividends were paid.
For the year ended 31 December 1998 and
onwards, dividends on the 75p ordinary shares, the
HK$10 ordinary shares and, following the share
reorganisation in 1999, the US$0.50 ordinary shares
have been declared in US dollars and, at the election
of the shareholder, paid in cash in one of, or in a
combination of, US dollars, sterling and Hong Kong
dollars, or satisfied in whole or in part by the issue of
new shares in lieu of a cash dividend.
Memorandum and Articles of
Association
The 2001 Annual General Meeting of HSBC
Holdings approved alterations to the Articles of
Association to:
• enable shareholders to elect to receive certain
shareholder communications electronically,
rather than in paper form through the mail, and
to appoint proxies electronically;
• require all Directors to stand for re-election at
least every three years. This reflects current
policy on the retirement of Directors by rotation
and the best practice recommendations
contained in the Combined Code on corporate
governance in the United Kingdom; and
• reflect the increase in authorised ordinary share
capital approved by shareholders at that
Meeting. The increase was from
US$5,250,000,000 to US$7,500,000,000
(comprising 15,000,000,000 ordinary shares of
US$0.50 each) by the creation of an additional
4,500,000,000 ordinary shares.
The discussion under the caption ‘Memorandum and
Articles of Association’ contained in HSBC Holdings
Annual Report on Form 20-F for the year ended 31
December 2000 is incorporated by reference herein.