Shell definitively leaves for London: shareholders vote for move

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Last month, Shell surprised the outgoing cabinet with the news that it wanted to leave the Netherlands. Hastily, outgoing minister Stef Blok (Economic Affairs, VVD) tried to change the company’s mind. The VVD also asked other parties whether they would still be in favor of abolishing the dividend tax, if this would prevent them from moving Shell. Again, there was little political support for this: three years ago, the cabinet had to withdraw the plan to abolish the dividend tax under pressure from the House of Representatives.

In the United Kingdom, the government does not levy dividend tax, which may play a role in the decision to leave the Netherlands. Shell itself cites the current dual share structure as the main reason for the move: the company wants to simplify it by merging the A-shares (in euros) and B-shares (in British pounds) listed in Amsterdam. Shell hopes to be able to operate more decisively in this way.

Jobs

Last year, Shell announced it would cut 7,000 to 9,000 of its 83,000 global jobs worldwide. About 9,000 people are employed in the Netherlands. It is unclear what the departure means for them; initially only Shell’s executives will go to London.

At Friday’s meeting in Ahoy, several shareholders insisted on a more sustainable course for Shell. The court in The Hague ruled last May that the gas company must reduce its net greenhouse gas emissions by 45 percent by 2030. The case was initiated by Milieudefensie. Shell is appealing the ruling. The decision to move to London is independent of the lawsuit, according to the company.