Shell plans to drop dual share structure, become fully UK based

Shell said Nov. 15 it plans to scrap its long-standing dual share system and move its tax residence to the UK to simplify its structure, boost competitiveness and accelerate shareholder distributions.

Shell said it wil propose to shareholders moving to single class of shares to bring it in line with its competitors and most other global companies.

Shell has been incorporated in the UK with Dutch tax residence and a dual share structure since 2005. Its origins as a dual structure company date back to 1907 when Koninklijke Olie merged with Shell Transport and Trading.

"The simplification will normalize our share structure under the tax and legal jurisdictions of a single country and make us more competitive. As a result, Shell will be better positioned to seize opportunities and play a leading role in the energy transition," Shell chair Andrew Mackenzie said in a statement.

As a result of the changes, Shell said it expects to change the company's official name from Royal Dutch Shell to Shell.

Shell, like all its European energy major rivals, has set targets to shift away from oil and gas production as it ramps up spending on renewables such as solar and wind power. The company says its oil production has already peaked in 2019.

"At a time of unprecedented change for the industry, it's even more important that we have an increased ability to accelerate the transition to a lower-carbon global energy system. A simpler structure will enable Shell to speed up the delivery of its Powering Progress strategy, while creating value for our shareholders, customers and wider society," Mackenzie said.

In addition to changing its tax residence to UK, Shell said its chief executive and a chief financial officer will be located in the UK along with its board and executive committee meetings.

Following the simplification, Shell shareholders will continue to hold the same legal, ownership, voting and capital distribution rights in Shell. Shares will continue to be listed in Amsterdam, London and New York, with FTSE UK index inclusion.