Express
Brexit Britain win confirmed as Shell overwhelmingly backs UK move – Dutch snubbed
SHAREHOLDERS in oil giant Shell have given their backing to proposals to move the Anglo-Dutch company’s headquarters to London from the Netherlands.
According to preliminary polling 99.77 percent of shareholders so far had backed the move with just under 58 percent of votes cast. Final results are expected later in the day although it is thought the result is unlikely to change.
The company follows another Anglo-Dutch firm, Unilever, which also decided to move its headquarters to London from the Netherlands. Shareholders were asked to vote on a range of new proposals aimed at simplifying the company’s structure which will also see it drop ‘Royal Dutch’ from its official name.
Shell’s tax residence and headquarters will move to the UK along with board meetings and senior staff, including chief executive Ben van Beurden.
Shell’s Chair, Sir Andrew Mackenzie, said: “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.
“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.”
Tax has been a key factor in the decision with the Netherlands applying a 15 percent withholding tax to dividends paid on Shell’s Class A shares.
Moving to the UK and simplifying to a single class of shares will avoid this.
When the proposals were first announced UK Business Secretary Kwasi Kwarteng described them as a “clear vote of confidence in the British economy”.
The Dutch government has been less pleased however saying it was “unpleasantly surprised”.
In the wake of the proposals it was reported scrapping the withholding tax was even considered in a desperate bid to keep Shell in the Netherlands however the plans were shelved due to lack of parliamentary support.
Some critics have argued the move is linked to a landmark court ruling earlier this year when a Dutch court ruled Shell would have to reduce its carbon emissions by 45 percent by 2030.
This was the first time a company has been legally obliged to align its policies with the Paris Agreement.
Climate protestors gathered outside Shell’s London offices this morning with banners claiming the company was not welcome.
At today’s meeting Shell also announced it would return $7bn (£5.3bn) to share holders from the sale of its Permian Basin oil fields.
Some critics have argued the move is linked to a landmark court ruling earlier this year when a Dutch court ruled Shell would have to reduce its carbon emissions by 45 percent by 2030.
This was the first time a company has been legally obliged to align its policies with the Paris Agreement.
Climate protestors gathered outside Shell’s London offices this morning with banners claiming the company was not welcome.
At today’s meeting Shell also announced it would return $7bn (£5.3bn) to share holders from the sale of its Permian Basin oil fields.
Once today’s vote is complete a final board decision will be taken with the board hoping to proceed with the proposals as soon as possible.
Shell’s share price rose 0.75 percent following the vote.
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