HSBC 2005 Annual Report Download - page 8

HSBC HOLDINGS PLC
Cautionary Statement regarding Forward-Looking Statements (continued)
6
– the effects of competition in the markets
where HSBC operates including increased
competition from non-bank financial
services companies, including securities
firms.
• factors specific to HSBC:
– the success of HSBC in adequately
identifying the risks it faces, such as the
incidence of loan losses or delinquency, and
managing those risks (through account
management, hedging and other techniques).
Effective risk management depends on, among
other things, HSBC’s ability through stress
testing and other techniques to prepare for
events that cannot be captured by the statistical
models it uses.
Information about the Enforceability of Judgements made in the United States
HSBC Holdings is a public limited company
incorporated in England and Wales. Most of HSBC
Holdings’ Directors and executive officers live
outside the US. As a result, it may not be possible to
serve process on such persons or HSBC Holdings in
the US or to enforce judgements obtained in US
courts against them or HSBC Holdings based on
civil liability provisions of the securities laws of the
US. There is doubt as to whether English courts
would enforce:
• certain civil liabilities under US securities laws
in original actions; or
• judgements of US courts based upon these civil
liability provisions.
In addition, awards of punitive damages in
actions brought in the US or elsewhere may be
unenforceable in the UK. The enforceability of any
judgement in the UK will depend on the particular
facts of the case as well as the laws and treaties in
effect at the time.
Exchange Controls and Other Limitations affecting Equity Security Holders
There are currently no UK laws, decrees or
regulations which would prevent the import or
export of capital or remittance of distributable
profits by way of dividends and other payments to
holders of HSBC Holdings’ equity securities who
are not residents of the UK. There are also no
restrictions under the laws of the UK or the terms of
the Memorandum and Articles of Association of
HSBC Holdings concerning the right of non-resident
or foreign owners to hold HSBC Holdings’ equity
securities or, when entitled to vote, to do so.