ABSTRACT

The Shell structure had been manifestly successful, at least up until perhaps the mid-1980s. The localness of Shell operating companies was an enormous asset. What was needed was to change the structure without destroying the pearl. The change came eventually six years later in 2005, when under strong pressure from shareholders and in the light of the reserves scandal Shell was forced to modify and modernise its structure and make a full merger of the two parents. Corporate governance and corporate structure are not ultimate determinants of the performance and behaviour of companies, but when robust they help to build trust and confidence of shareholders. When something goes wrong, the flaws in structure and governance tend to become plain. Shell in its Committee of Managing Directors structure had an excellent collegiate executive committee. The original double-headed structure of Shell effectively prevented the company making a major acquisition for shares.