HSBC 2001 Annual Report Download - page 158

HSBC HOLDINGS PLC
Report of the Directors (continued)
156
invoice is contested and settle disputes quickly.
Copies of, and information about, the Code are
available from: The Department of Trade and
Industry, No. 1 Victoria Street, London SW1 0ET.
It is HSBC Holdings practice to organise
payment to its suppliers through a central accounts
function operated by its subsidiary undertaking,
HSBC Bank plc. Included in the balance with HSBC
Bank plc is the amount due to trade creditors which,
at 31 December 2001, represented 14 days average
daily purchases of goods and services received from
such creditors, calculated in accordance with the
Companies Act 1985, as amended by Statutory
Instrument 1997/571.
Substantial interests in share capital
According to the register maintained under section
211 of the Companies Act 1985, the Hong Kong
Special Administrative Region Government (Hong
Kong SAR Government) had an interest on 4 May
2001 in 374,358,891 HSBC Holdings ordinary
shares of US$0.50, representing 4.01 per cent of the
ordinary shares in issue at that date. In addition, the
Hong Kong SAR Government had an interest in
units in the Tracker Fund of Hong Kong (TraHK),
which it holds with the intention of meeting its
obligations to distribute loyalty bonus units to
eligible investors under the terms of the Loyalty
Bonus Scheme outlined in the prospectus for TraHK.
As a consequence, the Hong Kong SAR Government
has an undivided interest in all the ordinary shares of
HSBC Holdings in TraHKs portfolio, but has no
ability to exercise any voting rights in respect of
those shares. To the best of the Hong Kong SAR
Governments knowledge, TraHKs portfolio on 4
May 2001 held 87,439,636 HSBC Holdings ordinary
shares, representing 0.94 per cent of the ordinary
shares in issue at that date, giving the Hong Kong
SAR Government a 4.95 per cent interest overall.
The Hong Kong SAR Government first disclosed an
interest in HSBC Holdings ordinary shares under
section 211 of the Companies Act 1985 on 1
September 1998, at which time it had an interest in
239,506,537 HSBC Holdings ordinary shares of
HK$10 each, representing 13.23 per cent of the
HK$10 ordinary shares in issue at that date.
No substantial interest, being 10 per cent or
more, in any of the equity share capital is recorded in
the register maintained under section 16(1) of the
Securities (Disclosure of Interests) Ordinance.
Dealings in HSBC Holdings plc
shares
Save for dealings by HSBC Investment Bank plc,
trading as a intermediary in HSBC Holdings shares
in London, neither HSBC Holdings nor any
subsidiary undertaking has bought, sold or redeemed
any securities of HSBC Holdings during the 12
months ended 31 December 2001.
Connected transactions
The following constituted connected transactions
under the rules of The Stock Exchange of Hong
Kong Limited.
In September 2001, HSBC CCF Asset
Management Group SA, a subsidiary of HSBC
Holdings, acquired 16.3 per cent of the capital of
Sinopia Asset Management S.A. (Sinopia) from
three of its corporate directors for a consideration of
30.344 million, increasing HSBC Holdings interest
to 76.7 per cent. Other directors of Sinopia were able
to participate in a cash public offer at the same price
of 27.5 per share, which further increased HSBC
Holdings' interest to 99.88 per cent.
In December 2001, CCF, a subsidiary of HSBC
Holdings, acquired 25.1 per cent of the capital of
Financière Groupe Dewaay S.A. from a corporate
director for a consideration of 68.75 million,
increasing HSBC Holdings' interest to 100 per cent.
HSBC in the Community
Since 1999 Lord Butler has, at the Boards request,
taken a policy overview of HSBC in the Community,
the principal objectives of which are to support
primary and secondary education for the
underprivileged and the Environment. In addition,
Lord Butler is Chairman of the HSBC Education
Trust, which began operation early in 2001.
Considerable progress continues to be made in
these important areas.
On 21 February 2002, HSBCs five-year
partnerships, called Investing in Nature’, with
Botanic Gardens Conservation International,
Earthwatch and WWF, were announced. Investing in
Nature will breathe new life into rivers, protect
endangered species, and fund conservation research
and education around the world. HSBC has committed
to providing US$50 million in funding over five years
in supporting these partnerships.