Royal Dutch Shell (NYSE:RDS.A) has announced that it is scrapping its dual share structure and moving its head office to London, England from the Netherlands.
The company said its move is in response to Dutch taxes and facing climate pressure in court as the energy giant shifts from oil and gas to more sustainable forms of energy.
The company, which long faced questions from investors about its dual share structure and had recently been hit by a Dutch court order over its climate targets, also plans to drop “Royal Dutch” from its name – part of its identity since 1907 – to become Shell Plc.
The Anglo-Dutch firm has been in a long-running battle with the Dutch authorities over the country’s 15% dividend withholding tax, which Shell sought to avoid paying with its two classes of stock. Its new structure will resolve that issue.
The Dutch government said it is “unpleasantly surprised” by Shell’s plans to move to London from its current headquarters in The Hague.
Shell’s shares, which will still be traded in Amsterdam and New York under the plan, climbed more than 2% in London on Monday morning after the news.
The changes require at least 75% of votes by shareholders at a general meeting to be held on December 10, Shell said in a news release.