HSBC 2010 Annual Report Download - page 355

353
Overview Operating & Financial Review Governance Financial Statements Shareholder Information
All redemptions are subject to prior notification to the Financial Services Authority and, where relevant, the local
banking regulator.
39 Called up share capital and other equity instruments
Issued and fully paid
2010 2009
US$m US$m
HSBC Holdings ordinary shares1 ............................................................................................................. 8,843 8,705
Number US$m
HSBC Holdings ordinary shares of US$0.50 each
At 1 January 2010 ..................................................................................................................................... 17,408,206,768 8,705
Shares issued under HSBC employee share plans ................................................................................... 25,001,734 12
Shares issued in lieu of dividends ............................................................................................................ 252,947,400 126
At 31 December 2010 ............................................................................................................................... 17,686,155,902 8,843
At 1 January 2009 ..................................................................................................................................... 12,105,265,082 6,053
Shares issued under HSBC employee share plans ................................................................................... 7,476,952 4
Shares issued in lieu of dividends ............................................................................................................ 235,225,669 118
Shares issued in respect of rights issue .................................................................................................... 5,060,239,065 2,530
At 31 December 2009 ............................................................................................................................... 17,408,206,768 8,705
1 All ordinary shares in issue confer identical rights in respect of capital, dividends, voting and otherwise.
Number US$m
HSBC Holdings non-cumulative preference shares of US$0.01 each
At 1 January 2010 and 31 December 2010 .............................................................................................. 1,450,000 –
At 1 January 2009 and 31 December 2009 .............................................................................................. 1,450,000 –
Dividends on the HSBC Holdings non-cumulative dollar preference shares (‘Dollar Preference Shares’) in issue are
paid quarterly at the sole and absolute discretion of the Board of Directors. The Board of Directors will not declare a
dividend on the Dollar Preference Shares in issue if payment of the dividend would cause HSBC Holdings not to
meet the applicable capital adequacy requirements of the FSA or the profit of HSBC Holdings available for
distribution as dividends is not sufficient to enable HSBC Holdings to pay in full both dividends on the Dollar
Preference Shares in issue and dividends on any other shares that are scheduled to be paid on the same date and that
have an equal right to dividends. HSBC Holdings may not declare or pay dividends on any class of its shares ranking
lower in the right to dividends than the Dollar Preference Shares in issue nor redeem nor purchase in any manner any
of its other shares ranking equal with or lower than the Dollar Preference Shares in issue unless it has paid in full, or
set aside an amount to provide for payment in full, the dividends on the Dollar Preference Shares in issue for the
then-current dividend period. The Dollar Preference Shares in issue carry no rights to conversion into ordinary shares
of HSBC Holdings. Holders of the Dollar Preference Shares in issue will only be entitled to attend and vote at general
meetings of shareholders of HSBC Holdings if the dividend payable on the Dollar Preference Shares in issue has not
been paid in full for four consecutive dividend payment dates. In such circumstances, holders of the Dollar
Preference Shares in issue will be entitled to vote on all matters put to general meetings until such time as HSBC
Holdings has paid a full dividend on the Dollar Preference Shares in issue. HSBC Holdings may redeem the Dollar
Preference Shares in issue in whole at any time on or after 16 December 2010, subject to prior notification to the
FSA.
HSBC Holdings non-cumulative preference shares of £0.01 each
On 29 December 2010 HSBC Holdings issued one non-cumulative sterling preference share of £0.01 (‘Sterling
Preference Share’) to facilitate the cancellation of the non-voting deferred shares and comply with the provisions of
the Companies (Authorised Minimum) Regulations 2009. Dividends on the Sterling Preference Share in issue are
paid quarterly at the sole and absolute discretion of the Board. The Sterling Preference Share in issue carries no rights
to conversion into ordinary shares of HSBC Holdings and no rights to attend and vote at general meetings of
shareholders of HSBC Holdings. HSBC Holdings may redeem the Sterling Preference Share in issue in whole at any
time at the option of the Company.