Simplified Share Structure

The Board unanimously believes that the Simplification will strengthen Shell’s competitiveness and accelerate both shareholder distributions and delivery of its strategy to become a net-zero emissions energy business.

The Simplification, announced on 15 November 2021, entails:

• Establishing a single line of shares to eliminate the complexity of Shell’s A/B Share Structure; and
• Aligning 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.

Shell has published a circular which contains further details of the Simplification and the proposed amendments to the Articles of Association.

A General Meeting was held at Rotterdam Ahoy, Ahoyweg 10, 3084 BA Rotterdam, the Netherlands at 10:00 (Dutch time), 09:00 (UK time) on Friday December 10, 2021.

Watch this short video where Sir Andrew Mackenzie, Chair of the Board of Shell, explains the reasons for proposing and benefits of a simplified structure.

A conventional single share structure will allow Shell to compete more effectively.  It will:

• Allow for an acceleration in distributions by way of share buybacks, as there will be a larger single pool of ordinary shares that can be bought back. Following the start of a $2 billion buyback programme in July, Shell announced in September that it will return an additional $7 billion to shareholders following completion of the sale of its Permian assets in the United States.
• Strengthen Shell’s ability to rise to the challenges posed by the energy transition, by managing its portfolio with greater agility.
• Reduce risk for shareholders by simplifying and normalising Shell’s share structure in line with its competitors and most other global companies. The current complex share structure is subject to constraints and may not be sustainable in the long term.

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