Benzinga | Nov 15, 2021 12:06PM EST

Royal Dutch Shell To Move HQ To London, End Dual Shares: What You Need To Know

Royal Dutch Shell plc ADR (NYSE: RDS-A) announced it is changing its name to Shell Plc, moving its headquarters from The Hague to London and is ending its dual share structure.

What Happened: According to a CNBC report, the company's restructuring and relocation is based on a long-running feud with the Dutch government regarding that country's 15% dividend withholding tax, which Shell attempted to avoid with the dual share set-up.

The company has also faced pressure from Dutch climate targets. Last month, the company was dropped from ABP, the Netherlands' largest state pension fund, as part of its purge of fossil fuel companies from its portfolio. In May, a Dutch court ordered the company to go further on planned greenhouse gas emission cuts designed to create alignment with the Paris climate deal's goal of limiting global warming to 1.5 degrees Celsius, a decision Shell said it would appeal.

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What Happens Next: The company's plans will require an affirmation vote of at least 75% of shareholders, who are scheduled to convene in a general meeting on Dec. 10.

The Dutch government responded to the news by announcing it was "unpleasantly surprised" by the company's actions. The company issued a statement that insisted the "simplification is designed to strengthen Shell's competitiveness and accelerate both shareholder distributions and the delivery of its strategy to become a net-zero emissions business."

RDS-A Trading Action: At last check, the company's shares were trading at $45.05; its 52-week range is $30.80 to $50.75.

Photo: Mike Mozart / Flickr Creative Commons