ShellNews.net: ROYAL DUTCH SHELL PLC FACES STRONG PROTESTS FOLLOWING SHABBY TREATMENT OF UK SHAREHOLDERS: UPDATE: Monday 15 August 2005 16.30 ET

ROYAL DUTCH SHELL FACES STRONG PROTESTS FOLLOWING SHABBY TREATMENT OF UK SHAREHOLDERS HOLDING SHARES IN ROYAL DUTCH PETROLEUM COMPANY

The emails below were received by ShellNews.net co-owner, Alfred Donovan. Any further emails received on the same subject will be posted on this page.

Received Thursday 11 August 2005

Subject: Shell Merger

Please could you have a look at how badly and immorally Shell has treated some of it oldest shareholders with a view to helping make Shell responsible for their actions. Many people will loose 40% of their dividend income at a stroke as they will have to sell shares to meet the tax bill. Other old people will effectively pay 40% tax now and another 40% when they die. Without Shells actions they would have only expected to pay 40% once in inheritance tax.

Many thanks

Received Monday 15 August 2005

Dear Mr Donovan

Subject: Re Shells unethical dishonest treatment of UK shareholders.

Please see a copy of a letter I wrote. Perhaps you could help us in some way. Thank you.

"...Please consider people like my mother of 86 whose holding of Shell is a lifelong investment which means 99% of it is capital gain. It is virtually all she has and she now faces losing 80% of it. 40% in tax now with the resultant huge loss in income after selling to pay the tax and 40% in inheritance tax which sadly is going to come about sooner rather than later. She saved and made sacrifices throughout her life in order to leave something to her children and grandchildren.

She is devastated at the unethical and ruthless way she has been treated. She is too old and frail to take risks and to be worried about the legal implications of not accepting the extended offer Shell made, so as if a knife to her throat she accepted the extended Shell offer only because Shell's chief executive insisted there was nothing left in his "tool-box" to help the investors. It seems that even in this statement Shell is shown to be deceitful liars and at the expense of old people who are too frightened to defend themselves. They thus tricked her into accepting the extended offer. What ruthlessness!

She would never have accepted Shells offer if they had been decent enough to admit what they now do which is that when push comes to shove, only to mitigate their own costs, they will look at ways to obtain the outstanding shares without so harming the remaining shareholders. It seems that these are much stronger wealthier less vulnerable people.

For Shell to have put people like my mother in such a dreadful position and then not equalise them with the remaining share holders will be so unjust, immoral and all the other things people are saying about Shell. See www.royaldutchshellplc.com

I fear publicity, public shame, is our only hope. Please do what you can to help."

Yours sincerely

(Relevant names and contact details have been withheld. These private emails are published without the consent of the authors. Any further emails received on the same subject will be published on the same basis.)

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THE TIMES (UK): Angry shareholders tell Shell to halt $5bn buyback plan: “FURIOUS shareholders urged Royal Dutch Shell to suspend a large share buyback programme last night amid concerns that it might cost the group up to €220 million (£151 million).”: Thursday 11 August 2005: Read the article

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The Sunday Times (UK): Shell move robs UK investors: “When the oil giant merged, British investors in the Dutch arm of the firm lost up to 25% of their holdings…”: “Many are elderly investors who have held the shares for decades and face tax bills of tens of thousands of pounds after their stock was converted into shares of the unified company, Royal Dutch Shell. 4”: Sunday 11 Sept 2005: READ

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: READ

Accountancy Age: Angry shareholders may sue Shell over tax bill: Monday 01 Nov 2005: READ

Tax-News.com: Shell Facing Shareholder Revolt Over Multi-Million Pound Tax Bill, London: The investors formed a working group last week and have retained the services of a City law firm with a view to taking legal action against Shell.”: Thursday 03 November 2005: READ

Daily Telegraph: Shell urged to help pay investors' tax bills: "Lord Oxburgh of Liverpool, the former chairman of Shell, has called on the oil and gas giant to compensate British investors left with a multi-million pound tax bill from its restructuring.": The vast majority of the 3,000 Royal Dutch holders accepted the deal after Jeroen van der Veer, Shell's chief executive, warned his "toolbox" to help them was empty. But a small minority held out and were rewarded in late September when Shell offered a tax-efficient loan note alternative. The shareholders who originally accepted - and have been left with a large tax bill - are now considering legal action against Shell.": Monday 14 November 2005: READ

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