Shell (RDSA) shareholders vote to scrap dual share structure
By Jenni Reid
13:35, 10 December 2021
Royal Dutch Shell (RDSA) shareholders have voted near-unanimously in favour of plans to ditch its dual share structure and move its headquarters from The Hague to London.
Preliminary results showed 99.77% approval from the 57.95% of outstanding shares cast.
The company, which is also dropping ‘Royal Dutch’ from its name to become Shell PLC, will no longer have separate A and B shares listed on the London, Amsterdam and New York stock exchanges.
Shell is seeking to streamline the company and increase returns to investors as it works towards its pledge to become a net zero company.
It has previously said that simplifying its share structure will allow it to accelerate distributions through share buybacks and remove some of the restraints associated with dual class shares.
Meanwhile the London move will align its tax residence with its country of incorporation in the UK, where it will hold board and executive committee meetings and base its CEO and CFO.
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“This resounding support from shareholders to amend Shell’s Articles of Association will enable a simplification of the company’s share structure and an increase in the speed and flexibility of capital and portfolio actions,” said Shell chair Andrew Mackenzie on Friday.
“The board believes that the simplification will strengthen Shell’s competitiveness and accelerate both shareholder distributions and delivery of its strategy to become a net-zero emissions energy business by 2050, in step with society.”
The company said a final decision would be made by the board following a consultation, but that it currently intended to proceed with the changes as soon as possible.