Royal Dutch Shell

Royal Dutch Shell plc is a major energy company, one of the top four vertically integrated private sector oil/gas companies in the world (along with BP, ExxonMobil, and Total). Shell also has a significant petrochemicals business (Shell Chemicals) and an embryonic renewable energy sector developing wind and solar opportunities. Its corporate headquarters are in The Hague, Netherlands, with legal headquarters in London, United Kingdom.

Combination of Royal Dutch and Shell

On October 28, 2004, the company announced its proposal formally to merge Royal Dutch and "Shell" Transport and Trading into one entity, Royal Dutch Shell plc, to be "incorporated in the UK but headquartered and tax resident in the Netherlands." The new parent company's primary listing will be on the London Stock Exchange. On the 28th of June, 2005 investors in both "Shell Transport and Trading" and in "Royal Dutch" approved, at their Annual General Meetings, plans to merge the Group's dual-ownership structure and create a single company worth £120bn ($219bn).

Related Topics:
October 28 - 2004 - London Stock Exchange

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The type of business structure now to be created was not possible under the relevant laws in 1907 when the Group was established, and the unique form of organisation that was then adopted by Shell, although durable, had come under criticism in recent years. Some critics thought that as the two parent companies had separate boards, with separate memberships, this meant that there was a certain amount of (undesirable) independence of each of the companies from the other. Others felt that the real power in Shell lay not with the two parent company boards at all but with the "Committee of Managing Directors" (CMD) which had no legal status, but nevertheless took all the key operational decisions. The new organisation structure follows a more conventional business model (e.g. in line with most other private sector oil companies) and most commentators have commented favourably on the change which they believe will establish a more transparent and accountable corporation. The CMD is abolished under this new structure, board meetings will be more executive in character and there will (now) only be one "Shell" AGM, in one location, every year.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~