HSBC 2012 Annual Report Download - page 497

495
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
38 Called up share capital and other equity instruments
Issued and fully paid
At 31 December
2012 2011
US$m US$m
HSBC Holdings ordinary shares1 ............................................................................................................. 9,238 8,934
Number US$m
HSBC Holdings ordinary shares of US$0.50 each
At 1 January 2012 ..................................................................................................................................... 17,868,085,646 8,934
Shares issued under HSBC employee share plans ................................................................................... 238,587,766 119
Shares issued in lieu of dividends ............................................................................................................ 369,335,252 185
At 31 December 2012 ............................................................................................................................... 18,476,008,664 9,238
At 1 January 2011 ..................................................................................................................................... 17,686,155,902 8,843
Shares issued under HSBC employee share plans ................................................................................... 11,354,577 6
Shares issued in lieu of dividends ............................................................................................................ 170,575,167 85
At 31 December 2011 ............................................................................................................................... 17,868,085,646 8,934
Number US$m
HSBC Holdings non-cumulative preference shares of US$0.01 each
At 1 January 2012 and 31 December 20122 ............................................................................................. 1,450,000 –
At 1 January 2011 and 31 December 2011 .............................................................................................. 1,450,000 –
1 All HSBC Holdings ordinary shares in issue confer identical rights in respect of capital, dividends, voting and otherwise.
2 Included in the capital base of HSBC as tier 1 capital in accordance with the rules and guidance in GENPRU.
Dividends on the HSBC Holdings non-cumulative dollar preference shares in issue (‘dollar preference shares’) 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 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 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 nor redeem nor purchase in any manner any of its other shares ranking equal with or
lower than the dollar preference shares unless it has paid in full, or set aside an amount to provide for payment in full,
the dividends on the dollar preference shares for the then-current dividend period. The dollar preference shares carry
no rights to conversion into ordinary shares of HSBC Holdings. Holders of the dollar preference shares 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 has not been paid in full for four consecutive dividend payment dates. In such circumstances,
holders of the dollar preference shares 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. HSBC Holdings may redeem the dollar
preference shares 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
The one non-cumulative sterling preference share of £0.01 in issue (‘sterling preference share’) has been in issue since
29 December 2010 and is held by a subsidiary of HSBC Holdings. Dividends on the sterling preference share are paid
quarterly at the sole and absolute discretion of the Board. The sterling preference share carries no rights of 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 it in whole at any time at the option of the Company.
Other equity instruments
Other equity instruments which have been included in the capital base of HSBC were issued in accordance with the
rules and guidance in the FSA’s GENPRU. These securities may be called and redeemed by HSBC subject to prior
notification to the FSA. If not redeemed at the first call date interest coupons remain unchanged.