Shell announced a proposal to simplify its share structure to create a single line of shares and align its tax residency with its country of incorporation, the UK. In addition, the Board wants to change the company’s name from Royal Dutch Shell plc to Shell plc. Shareholders will vote on the proposals at a meeting on December 10.
The company Koninklijke Nederlandsche Petroleum Maatschappij, founded in 1890, merged with the British Shell Transport and Trading Company in 1907. The Royal Dutch Shell Group was created, and the Dutch company was renamed the Royal Dutch Petroleum Company. In 2005, the two companies were merged to form Royal Dutch Shell plc, a public company under English law, which is listed on the stock exchanges in London, Amsterdam, and New York. The company’s headquarters are in The Hague, the Netherlands.
Following the announced simplification, shareholders will continue to hold the same legal, ownership, voting, and capital distribution rights in Shell. Shares will continue to be listed in Amsterdam, London, and New York (through the American Depository Shares program), with FTSE UK index inclusion. Its fully expected AEX index inclusion will be maintained.
Shell’s corporate governance structure will remain unchanged. According to the company, its Projects and Technology division, global Upstream and Integrated Gas businesses, and renewable energies hub remain located in The Hague. The company will continue to participate in wind projects off the Dutch coast, to build a world-scale low-carbon biofuels plant at the Energy and Chemicals Park Rotterdam, the Netherlands, to plan to build Europe’s biggest electrolyze in Rotterdam, and to participate in the Porthos carbon capture and storage project.
According to Shell, the simplifications are designed to make payments to shareholders easier, strengthen the company’s competitiveness, and help to transform its business to become a net-zero emissions business. However, earlier this year, a court in the Netherlands ruled that by 2030 Shell must reduce its CO2 emissions by 45 % compared to 2019. This decision only applies in the Netherlands.
- Royal Dutch Shell plc (Shell), The Hague, the Netherlands