Loading ...In “Unwelcome Surprise” To Dutch, Shell To Ditch Dual Share Structure, Move Tax Base To UK, Drop “Royal Dutch” From Name
In a surprise corporate overhaul which the Dutch government branded an “unwelcome surprise”, Royal Dutch Shell said on Monday it would scrap its dual share structure and move its head office to Britain from the Netherlands, pushed away by Dutch taxes and facing climate pressure in court as the energy giant shifts from oil and gas. The company, which long faced questions from investors about its dual structure and had recently been hit by a Dutch court order over its climate targets, will also drop “Royal Dutch” from its name – part of its identity since 1907 – to become Shell Plc.
The Anglo-Dutch firm has been in a long-running tussle with the Dutch authorities over the country’s 15% dividend withholding tax, which Shell sought to avoid paying with its two share classes. Its new single structure would resolve that issue and allow Shell to strike swifter sale or acquisition deals.
“The current complex share structure is subject to constraints and may not be sustainable in the long term,” Shell said, as it announced its plan to change the structure. The move requires at least 75% of votes by shareholders at a general meeting to be held on Dec. 10, the company said.