UCL Faculty of Laws


Letter by Professor Marc Moore on HSBC’s Covid-19 response published in Financial Times

7 April 2020

The letter discusses a legal issue related to the coronavirus outbreak concerning HSBC’s investors.

Image of HSBC building

Professor Marc Moore, Chair in Corporate/Financial Law at UCL Laws, has written a piece published in the Letters section of today’s Financial Times.

The letter, ‘HSBC made the rational commercial response’ (£), focuses on HSBC’s recent decision to suspend its dividend, following pressure from the Bank of England. Professor Moore argues that it would be an “error of judgement” for HSBC’s Hong Kong retail investors to pursue legal action against the bank or its directors over the dividend cut.

Professor Moore states that: “HSBC’s dividend suspension is a rational commercial response to unprecedented circumstances”, and that under these conditions, the shareholders do not have an enforceable legal right to receive regular dividends.

Read the letter in full on the Financial Times website (£).

Image: "Hong Kong bank towers" by unci_narynin is licensed under CC BY-NC-SA 2.0