HSBC 2005 Annual Report Download - page 332

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
330
42 Litigation
HSBC, through a number of its subsidiary undertakings, is named in and is defending legal actions in various
jurisdictions arising from its normal business. None of these proceedings is regarded as material litigation.
43 Related party transactions
Compensation to the Board of Directors and other key management personnel1
HSBC
2005 2004
US$m US$m
Short-term employee benefits ........................................................................................................ 71 80
Post-employment benefits .............................................................................................................. 22
Share-based payment ..................................................................................................................... 21 16
94 98
1Key management personnel of HSBC are Board Directors and Group Managing Directors.
Transactions, arrangements and agreements involving Directors and others
Particulars of transactions, arrangements and agreements entered into by subsidiaries of HSBC Holdings with
Directors and connected persons and companies controlled by them and with officers of HSBC Holdings, disclosed
pursuant to section 232 of the Companies Act 1985, were as follows:
2005 2004
Number of
persons
Balance at
31 December
Number of
persons
Balance at
31 December
US$000 US$000
Directors and connected persons
and companies controlled by them1 .............................. 76 82
Loans ................................................................................... 279,297 310,239
Credit cards ......................................................................... 250 324
Guarantees ........................................................................... 10,622 21,628
Officers2 .............................................................................. 37 34
Loans ................................................................................... 42,857 47,767
Credit cards ......................................................................... 352 395
Guarantees ........................................................................... 164 168
Further information on related party transactions, disclosed pursuant to the requirements of IAS 24, is shown below.
The disclosure of the year-end balance and the highest amount outstanding during the year is considered the most
meaningful information to represent the amount of the transactions and the amount of outstanding balances during
the year.
1All of the Directors are key management personnel of HSBC Holdings. The highest amounts outstanding during 2005 of loans, credit
card transactions and guarantees with HSBC for the Directors and connected persons and companies controlled by them were
US$495,990,427, US$617,259 and US$16,775,779 respectively (2004: US$642,727,305, US$811,453 and US$34,767,316
respectively).
2Included within Officers are non-Director members of the key management personnel of HSBC Holdings. During 2005, 6 non-
Director key management personnel and members of their close families entered into loan, credit card transactions and guarantees
with HSBC (2004: 4 persons). The highest amounts outstanding during 2005 of loans, credit card transactions and guarantees with
HSBC for the non-Director key management personnel and members of their close family were US$30,116,609, US$287,888 and
US$20,385 respectively (2004: US$56,577,166, US$207,235 and US$20,385 respectively). The balances of loans and credit card
transactions and guarantees with HSBC outstanding at 31 December 2005 for the non-Director key management personnel and
members of their close family were US$20,166,452, US$66,467 and US$20,385 respectively (2004: US$24,264,409, US$ 128,155 and
US$20,385 respectively).
Particulars of Directors’ transactions are recorded in a register held at the Registered Office of HSBC Holdings
which is available for inspection by members for 15 days prior to the HSBC Holdings Annual General Meeting and
at the Annual General Meeting itself.
Some of the transactions were connected transactions, as defined by the Rules Governing The Listing of Securities
on The Stock Exchange of Hong Kong Limited but were exempt from any disclosure requirements under the
provisions of those Rules.