 decision to move headquarters to the Netherlands has proved controversial, risking investor revolts for the group. ){kind=link}
Unilever’s (LON: ULVR) decision to move headquarters to the Netherlands has proved controversial, risking investor revolts for the group.
Legal & General Investment Management (LGIM) is the company’s fourth-biggest shareholder and said it plans to oppose the move.
Sacha Sadan, the director of corporate governance at LGIM, has asked Unilever to “ensure that any approach they take safeguards the ability of our clients to maintain their investment and benefit from Unilever’s continued success”.
Columbia Threadneedle, Aviva Investors (LON: AV) and M&G are also against the company’s decision to abandon its dual Anglo-Dutch structure in favour of a single base in Rotterdam, The Netherlands.
Unilever is attempting to win back confidence in the decision and has taken out full-page newspaper adverts to encourage investors to back the plan.
Despite the move of the HQ to Rotterdam, the group does not plan on exiting the UK. Two of the company’s three divisions will remain in the UK and will keep the 6,000 UK staff.
The chief executive, Paul Polman, has said that the decision “has nothing to do with Brexit”.
The chairman, Marijn Dekkers, said: “With our 55 percent shareholder base we need to make the decision for the Netherlands. We are committed to both the UK and the Netherlands. That is reflected in the decision that you have the faster-growing divisions headquartered in the UK.”
The vote will take place on 25 October and requires 75 percent support from UK shareholders.