By Jaime Llinares Taboada

Royal Dutch Shell PLC on Monday laid out plans to simplify its share structure, ending its current dual-share class, and to move its tax residency to the U.K.

Since its unification in 2005, the oil-and-gas company has been incorporated in the U.K. with Dutch tax residence and an A/B dual share structure.

Shell is now asking shareholders to approve the simplification of the company's structure at a general meeting to be held on Dec. 10 in Rotterdam.

The company said a single-share structure will allow it to accelerate share buyback programs, to manage its portfolio with greater agility, and to reduce risk for shareholders.

"The simplification will make Shell more competitive, it will allow for an acceleration in shareholder distributions and speed up Shell's transition to a net-zero emissions energy business," Chairman Andrew Mackenzie said.

A single line of shares would remove restrictions on the company's buyback program, according to Biraj Borkhataria from RBC Capital Markets. There is currently a buyback limitation of around $2.5 billion per quarter, and moving to a single-share class would likely more than double this, Mr. Borkhataria said.

Shell said the simplification might result in tax costs of up to $400 million.

As part of the process, Chief Executive Ben van Beurden and Chief Financial Officer Jessica Uhl will be relocated to the U.K., where board and executive meetings will be held.

In addition, Shell expects to change its name to Shell PLC as it will no longer meet the conditions for using the "Royal" designation, it said.

Shares at 0848 GMT were up 2.5% at 1,682 pence.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

11-15-21 0415ET