THE HAGUE (dpa-AFX) - The Board of Royal Dutch Shell plc (RDS-B, RDSB.L, RDSA.L, RDS-A) has proposed to simplify its share structure. Under the proposal, the company plans to change its share structure to establish a single line of shares. Shell will also align its tax residence with its country of incorporation in the UK. The company's Board unanimously recommended shareholders vote in favour of the proposed resolution.
The company has been incorporated in the UK with Dutch tax residence and a dual share structure since 2005. Shell noted that the current complex share structure is subject to constraints and may not be sustainable in the long term.
Following the simplification, shareholders will continue to hold the same legal, ownership, voting and capital distribution rights in the company. Shares will continue to be listed in Amsterdam, London and New York, with FTSE UK index inclusion.
Shell said the simplification is designed to accelerate both shareholder distributions and the delivery of its strategy to become a net-zero emissions business. The company noted that the simplification will allow for an acceleration in distributions by way of share buybacks, as there will be a larger single pool of ordinary shares that can be bought back.
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