Royal Dutch Shell has announced plans to relocate its headquarters from the Netherlands to the United Kingdom in order to streamline the company’s structure, Njenje Media News reports.
The streamlining is intended to improve Shell’s competitiveness and accelerate shareholder distributions as well as the company’s goal of being a net-zero emissions company. Its current headquarters is at The Hague.
“At a time when the sector is undergoing unprecedented transformation, it’s even more vital that we have increased our capabilities to accelerate the transition to a lower-carbon global energy system,” said Sir Andrew Mackenzie, chairman of Shell. With a simplified structure, Shell will be able to fulfill its Powering Progress aim faster, while also delivering value to our shareholders, customers, and society as a whole.”
Shell plans to restructure its share structure under the proposal unveiled today in order to develop a single line of shares that is easier for investors to comprehend and value. In addition, the company’s tax residence will be aligned with its country of establishment in the United Kingdom.
Shell has been incorporated in the UK with Dutch tax residence and a dual share structure since the 2005 unification of Koninklijke Nederlandsche Petroleum Maatschappij and The Shell Transport and Trading Company under a single parent company. The company said it was not envisaged at the time of unification that the current A/B share structure would be
The corporation has stated that it is proud of its Anglo-Dutch background and that it will continue to be a big employer in the Netherlands. The Hague will continue to be home to the company’s Projects and Technology division, as well as its global Upstream and Integrated Gas businesses and renewable energy centre.
