Royal Dutch Shell PLC shareholders have approved the London move

FILE PHOTO: A logo for Shell is seen on a garage forecourt in central London

(Age starts at 10:00 am CET / 0900GMT)

* Stockholders will vote to simplify the shell and move to London.

* The Board of Directors will make the final decision, which is scheduled for early 2022.

* Suspending the Dutch source was a factor in the end of the shell.

* Shell says the UK site will facilitate withdrawals and dividends.

* The company has stated that the move will not have any impact on environmental policy.

Rotterdam, Dec 10 (Reuters) – Royal Dutch Shell PLC’s shareholders are expected to vote on Friday to end plans to end the company’s dual-share structure and move its headquarters from The Hague to London.

The company’s board of directors presented the plan in November https://www.reuters.com/world/uk/shell-proposes-single-share-structure-tax-residence-uk-2021-11-15, They argue that this simplification will make the shell more competitive and make it easier to pay dividends and repurchase shares.

The project, the company will lose the title of “Royal Dutch” https://www.reuters.com/business/energy/shell-shake-up-leaves-dutch-royally-hacked-off-2021-11-15 “For more than a century it has been” Shell PLC “and must be approved by 75% of the shareholders’ votes at the Rotterdam meeting.

According to its supporters, Shell’s decision was triggered by a Dutch court ruling in May. https://www.reuters.com/business/sustainable-business/dutch-court-orders-shell-set-tougher-climate-targets-2021-05-26 Ordered to reduce its carbon emissions by 45% by 2030. Shell, which is appealing against this decision, assures that its environmental policy will not be affected by this action.

Taxation played a role. Since the company’s registered office and tax residence are now in the Netherlands, dividends paid on its “A” shares are subject to 15% Dutch favorite tax.

Equivalent payments for “B” shares are distributed through the “dividend access mechanism”, which guides them through a trust registered on Channel Island, Jersey, to avoid the Dutch tax.

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The new single-share system and the UK tax focus will solve these problems because Britain has not suspended the tax on dividends.

The company plans to return $ 7 billion in revenue to shareholders through the sale of US gas assets ConocoPhillips. https://www.shell.com/media/news-and-media-releases/2021/shell-signs-agreement-to-sell-permian-business.html

The Dutch government says it will “do” with Shell’s decision to leave the country, and a member of parliament from the Green Party has expressed the idea of ​​imposing an “exit tax” on the company. This idea did not receive support.

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About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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