* Shell says new structure to speed up payouts
* Dutch court ordered Shell to accelerate energy shift
* Analyst says move to boost Shell's buyback ability
* 'Royal Dutch' to be dropped from name
(Adds comment by shareholder, Dutch government reaction)
By Shadia Nasralla and Sachin Ravikumar
LONDON, Nov 15 (Reuters) - Royal Dutch Shell said
on Monday it would scrap its dual share structure and move its
head office to Britain from the Netherlands, pushed away by
Dutch taxes and facing climate pressure in court as the energy
giant shifts from oil and gas.
The company, which long faced questions from investors about
its dual structure and had recently been hit by a Dutch court
order over its climate targets, aims to drop "Royal Dutch" from
its name - part of its identity since 1907 - to become Shell
Plc.
The Anglo-Dutch firm has been in a long-running tussle with
the Dutch authorities over the country's 15% dividend
withholding tax, which Shell sought to avoid paying with its two
share classes. Its new structure would resolve that issue.
In a further knock to its relations with the Netherlands,
the biggest Dutch state pension fund ABP said last month it
would drop Shell and all fossil fuels from its portfolio.
The Dutch government said on Monday it was "unpleasantly
surprised" by Shell's plans to move to London from The Hague.
Shell's shares, which will still be traded in Amsterdam and
New York under the plan, climbed more than 2% in London on
Monday morning after the news.
"The current complex share structure is subject to
constraints and may not be sustainable in the long term," Shell
said, as it announced its plan to change its share structure.
The move requires at least 75% of votes by shareholders at a
general meeting to be held on Dec. 10, Shell said.
"We see merits in the proposed restructuring of Shell's
shares structure and tax residence. Among other benefits, the
proposed changes will increase Shell's ability to buy back
shares," Jefferies said in a research note.
Monday's move follows a major overhaul Shell completed this
summer as part of its strategy to shift away from oil and gas to
renewables and low-carbon energy. The overhaul included
thousands of job cuts around the world.
CLIMATE ACTION
In May, a Dutch court ordered Shell to deepen its planned
greenhouse gas emission cuts in order to align with the Paris
climate deal which aims to limit global warming to 1.5 degrees
Celsius. Shell has said it would appeal.
"If this decision will enable the company to be more agile
in order to execute its transition to net zero, then it should
be viewed positively," said Adam Matthews, chief responsible
investment officer at Church of England Pensions Board, a Shell
shareholder.
Matthews, who is leading talks with Shell on behalf of the
investor group Climate Action 100+, said it should not remove
Shell's responsibility to implement the Dutch court ruling.
Shell is also battling calls made last month from activist
investor Third Point for the firm to be broken up into multiple
companies. Shell's top executives hit back, saying the
businesses work better together.
Shell said of its latest plan: "The simplification is
designed to strengthen Shell's competitiveness and accelerate
both shareholder distributions and the delivery of its strategy
to become a net-zero emissions business."
Dutch Prime Minister Mark Rutte and his coalition had
planned to scrap the withholding tax in 2018 in order to retain
the headquarters of Shell and Unilever, another Anglo-Dutch firm
which has also now shifted to London. Dutch lawmakers opposed
the move. Rutte had warned it could prompt firms to relocate.
Consumer products giant Unilever abandoned its dual
Anglo-Dutch structure last year in favour of a single
London-based entity.
Corporate giants are under growing pressure to simplify
their structures with General Electric, Toshiba
and Johnson & Johnson announcing plans last week to
split into separate companies.
Dual listings, which are more expensive to maintain, are
also falling out of favour. Miner BHP, like Unilever, has also
called time on such a structure.
(Reporting by Sachin Ravikumar in Bengaluru and Shadia Nasralla
in London; Editing by Shounak Dasgupta and Edmund Blair)
