Analyst Note| Allen Good, CFA |
Royal Dutch Shell has proposed to simplify its share structure by eliminating its A and B class shares and establishing a single line of shares. It also plans to shift its tax residence and country of incorporation from the Netherlands to the United Kingdom. Authorization of its restructuring plans will require at least 75% shareholder approval. If the resolution passes, Shell will be fully incorporated in the U.K. and move its headquarters there along with its CEO and CFO. As a result, the company is likely to drop “Royal Dutch” from its name and be known simply as Shell.