Shell to unify its two management boards

LONDON – The Royal Dutch/Shell Group of Companies has decided to combine its British and Dutch supervisory boards and is considering merging its two holding companies, a newspaper said yesterday.

Several members of a Shell steering committee are urging a thorough restructuring that goes beyond shareholders’ expectations in a bid to restore the company’s battered credibility, the Financial Times reported. Investors and analysts alike have blamed Shell’s cumbersome bi-national corporate structure for the breakdown in governance that led to significant overstatements of the company’s oil and gas reserves.Shell downgraded its proven reserves by 4,47 billion barrels, or 23 per cent, in four separate revisions starting in January.The scandal sparked a shareholder uproar and led to the resignations of several top executives, including its chairman Philip Watts and its chief financial officer and head of exploration and production.The debacle also triggered investigations by regulatory authorities.Shell agreed in July to pay a US$120 million (N$720 million) penalty to the U.S.Securities and Exchange Commission and a fine of 17 million pounds (US$31 million) to Britain’s Financial Services Authority.Shares in Shell Transport & Trading were trading 0,8 per cent higher at 392,75 pence (US$718.73) on the London Stock Exchange.- Nampa-APInvestors and analysts alike have blamed Shell’s cumbersome bi-national corporate structure for the breakdown in governance that led to significant overstatements of the company’s oil and gas reserves.Shell downgraded its proven reserves by 4,47 billion barrels, or 23 per cent, in four separate revisions starting in January.The scandal sparked a shareholder uproar and led to the resignations of several top executives, including its chairman Philip Watts and its chief financial officer and head of exploration and production.The debacle also triggered investigations by regulatory authorities.Shell agreed in July to pay a US$120 million (N$720 million) penalty to the U.S.Securities and Exchange Commission and a fine of 17 million pounds (US$31 million) to Britain’s Financial Services Authority.Shares in Shell Transport & Trading were trading 0,8 per cent higher at 392,75 pence (US$718.73) on the London Stock Exchange.- Nampa-AP