Royal Dutch Shell announces plan to move to UK tax residence

[LONDON] Energy giant Shell on Monday announced plans to switch its tax residence from the Netherlands to the UK, and to drop Royal Dutch from its name under a major shakeup.

The group plans also to relocate to the UK its chief executive and chief financial officer, on condition of shareholder approval in a vote due Dec 10.

When Shell informed the Dutch government of its plan, economic affairs minister Stef Blok said in a statement on Twitter on Monday: "We are unpleasantly surprised by this. The Cabinet deeply regrets this intention."

The company aims to simplify its business by scrapping its dual share structure and change its name to Shell Plc. The change in name comes because the company anticipates that it will no longer meet the conditions for using the honorary "Royal Dutch" designation following the proposed changes.

The moves come weeks after hedge fund Third Point disclosed a large stake in Shell, calling on it to split into multiple companies to increase its performance and market value.

But Shell hit back, saying it was better together.

Its chairman Andrew Mackenzie said the board was recommending that shareholders vote in favour of the proposals, so the company would be "better positioned to seize opportunities and play a leading role in the energy transition".

Shell will retain listings in Amsterdam, London and New York; key hubs in The Hague will stay and the Netherlands would remain important to its energy transition activities.

Shell, which has had the dual share structure in place since 2005 after the merger of Koninklijke Nederlandsche Petroleum Maatschappij and The Shell Transport and Trading Company, would need at least 75 per cent of votes in its favour to implement the new plans.

AFP, REUTERS