Shell dumps the Dutch, set to move to London in steepest overhaul since 2005

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Shell dumps the Dutch, set to move to London in steepest overhaul since 2005

On Monday, Royal Dutch Shell, commonly dubbed as ‘Shell,’ the UK-incorporated Anglo-Dutch multinational oil and gas behemoth, often contemplated as one of seven oil ‘Supermajors’, had issued a statement saying that the company had been brewing off an option to ditch out its dual share structure and contemplating a move to relocate its head office to United Kingdom from Hague, as a recent hike in Dutch taxation alongside growing pressures from climate change activists seemed to be taking a larger toll on the fossil-fuel giant.

On top of that, latest move from Royal Dutch Shell to scrap a dual-share structure which had long been a subject to deep discontent among its investors, came against the backdrop of a recent Dutch court order regarding Shell’s climate targets alongside a potential carbon taxation in the 26-member bloc that ostensibly had prompted the oil major to shed ‘Royal Dutch’ from its name to become Shell Plc., marking off the company’s one of the biggest corporate overhauls since its inception back in the 1907s.

Aside from that, Shell has been engaged in a long-running dispute with Dutch authorities over Netherlands’ 15 per cent taxation on some of its shares which were not subject to dividends, as the company continues to feel the pinch of a dual-share structure amid lackluster demands from international investors.

However, Shell had introduced the dual-share structure in 2005 under a sweeping corporate reform.

Shell shifts to UK as climate targets pressure ratchets up

Nevertheless, under Shell Plc’s new corporate structure, all of its shares would be subject to British taxation law, meaning none of its dividend withholding shares would be subject to Dutch taxes alongside a likely carbon taxation law in a near future.

The deal, in tandem, would allow Shell to cut swift sale or acquisition deals. The Dutch Government was quoted in a statement following the announcement that it was ‘unpleasantly surprised’ in Shell’s plan to shift to London from Hague.