On November 15, 2021 we reported that on that same date Royal Dutch Shell issued a press release announcing that it during its General Shareholders Meeting of December 10, 2021 Royal Dutch Shell seeks shareholder approval to change its Articles of Association to allow the simplification of the company’s structure.
The proposed simplification of the company’s structure a.o. includes:
· The proposal will establish a single line of shares to eliminate the complexity of Shell’s A/B share structure.
· The proposal will also align Shell’s tax residence with its country of incorporation in the UK, where it will hold Board and Executive Committee meetings, and locate its chief executive and chief financial officer.
On the General Shareholders Meeting that took place on December 10, 2021 a large majority of Shell’s shareholders voted in favor of the proposal to change Shell’s Articles of Association to allow the simplification of the company’s structure.
During the meeting 99.77% (4,457,906,291) of the votes issued was in favor of the proposal. Whereas 0.23% (10,074,197) of the votes issued was against the proposal. 10,176,835 votes were withheld. It should be noted however that a ‘vote withheld’ is not a vote under English Law and is not counted in the calculation of the proportion of the votes ‘for’ and ‘against’ a resolution.
According to Shell a final Board decision will be taken following completion of the consultation with the relevant Shell staff councils. Shell furthermore states that the Board intends to proceed with the simplification as soon as reasonably practicable provided that it remains, in the Board’s view, in the best interests of the company and shareholders as a whole. In making its final decision, the Board will take into account all relevant factors.
Click here to be forwarded to the voting Results of the 2021 General Meeting as available on Shell’s website.
Click here to be forwarded to Shell’s New Articles of Association as available on Shell’s website.
Click here to be forwarded to New Articles - Comparison (amended vs existing) as available on Shell’s website.
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