ShellNews.net: Royal Dutch Shell plc: Far from a fresh start for Shell: 10 June 2005
By Alfred Donovan
The Herald, a Scottish newspaper, published an article today under the headline: "Chastened Shell sets out latest guidelines on oil reserves": Read the article
The following is an extract: “Shell stunned world financial markets in January 2004 when it slashed proven oil and gas reserves, or oil still in the ground, by 20%, the equivalent of 3.9 billion barrels. Further, smaller disclosures followed along with the revelation that the group's former management had known about the vast overbooking and lied to cover it up.”
This comment is incorrect as senior management figures from the "former management" run the current Shell global operation and will continue to do so if the new unified corporate vehicle, Royal Dutch Shell plc, is given the go-ahead by shareholders in Royal Dutch Petroleum Company and Shell Transport and Trading Company plc. Shareholder approval is being sought in the dual AGM's being held later this month on 28 June in London and The Hague. The unified company go-ahead is also subject to a court proceeding being held in the UK immediately after the Shell Transport AGM.
The current Chairman of the Committee of Group Managing Directors, Mr Jeroen van der Veer and his Deputy Chairman, Mr Malcolm Brinded, will continue to be the two most senior executives in the proposed unified Royal Dutch Shell plc whilst past activities in which they were involved are still being investigated by the US Justice Department. As has been previously reported, Mr van der Veer could end up with 20 year jail sentence if found guilty of fraud. See story link below.
The same Shell directors are also Defendants in a multi-billion dollar US Class Action lawsuit (being brought by Pennsylvania State Pension Funds). A court hearing is scheduled for mid-July in regard to that action.
So its far from a fresh start. The new $200 billion multinational company will be tainted by Shell's past scandals.
Click here for ShellNews.net HOME PAGE