Daily Telegraph: Investors consider suing Shell: "More than 1,000 British shareholders controlling over £100m-worth of shares in Royal Dutch Petroleum are considering suing Shell to try to claw back some of a multi-million pound tax bill caused by the restructuring of the oil and gas giant.": "Shell should do for us what they have done for the refuseniks. They made billions of profits this year so they can afford to pay us off.": Tuesday 1 November 2005

By Christopher Hope (Filed: 01/11/2005)

More than 1,000 British shareholders controlling over £100m-worth of shares in Royal Dutch Petroleum are considering suing Shell to try to claw back some of a multi-million pound tax bill caused by the restructuring of the oil and gas giant.

Shell's plans to create a £130billion giant called Royal Dutch Shell were heavily criticised for leaving 3,000 UK holders in Royal Dutch Petroleum with a £77m capital gains tax bill. After Shell's chief executive Jeroen van der Veer warned that there was nothing in the company's "tool-box" to help them, the majority accepted the terms.

However a vociferous "refusenik" minority held out, and were rewarded when Shell performed an about-turn and agreed to offer a tax-efficient loan note.

The investors formed a working group last week to examine a number of ways forward. One option is to take legal action against Shell.

A City law firm has been retained to provide advice and will report back to the group within the next fortnight.

Angela Knight, chief executive of the Association of Private Client Investment Managers and Stockbrokers (Apcims), said the investors wanted Shell to pay their tax bill. She said: "What most people would like is for Shell to make a similar financial gesture that is reasonable."

Pamela Sheldon, a 75-year-old investor who is facing a £7,000 bill on her £45,000 holding, said: "Shell should do for us what they have done for the refuseniks. They made billions of profits this year so they can afford to pay us off."

Shell is holding an extraordinary meeting to vote on the loan note alternative in the Hague on December 16. A spokesman said: "We are aware that Apcims held a meeting last week, but we have not been informed of the outcome of that meeting.

"We have already provided all relevant information to Apcims and our shareholders over the past months."

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