Royal Dutch Shell Plc is seeking shareholder approval to simplify its share structure, replacing it’s A/B share split into a single stock line.
At the same time the company intends to align the group’s tax residence to with its incorporation in the UK, where it will locate chief executive and chief financial officer and hold board and executive committee meetings.
The changes will allow Shell to accelerate its ‘Powering Progress’ strategy, which seeks to transition the company to a lower-carbon global energy system.
It will unwind the dual UK with Dutch tax residence – and share structure that separated dividend payment across pounds sterling (represented by ‘B’ shares) and US dollars (‘A’ shares) – which had been in place since 2005. The company noted that when the current structure was put in place it was not intended to be a permanent arrangement.
Shell noted that a simplified single stock line would allow for accelerated shareholder distributions, for example share buybacks will be easier, as there will be a larger single pool of shares to buy-back.
“The simplification will normalise our share structure under the tax and legal jurisdictions of a single country and make us more competitive,” said Shell chair Sir Andrew Mackenzie.
“As a result, Shell will be better positioned to seize opportunities and play a leading role in the energy transition. Shell’s board unanimously recommends shareholders vote in favour of the proposed resolution.”
Shell added that it is proud of its Anglo-Dutch heritage and will continue to be a significant employer with a major presence in the Netherlands – and highlighted is growing presence in wind projects off the Dutch coast and its plans for a ‘world-scale’ low-carbon biofuels plant and Europe’s biggest electrolyser in Rotterdam.