Unilever shareholder in ‘revolt’ over tax risks associated with Amsterdam move
A shareholder in Unilever has hinted it could vote against the consumer giant's plan to move its headquarters to Amsterdam to simplify its corporate structure.
The Times reported that Lindsell Train, Unilever's third largest shareholder, could vote against the move on the grounds that it would result in the forced sale of Unilever shares and mean UK shareholders may have to bear tax risks in the Netherlands that could withhold dividends.
The maker of Marmite sparked a backlash when it announced the move, with many commentators suggesting it could be because of Brexit. The company denied the claim, saying the rational behind the relocation was to allow it to simplify its dual-share structure.
Nick Train, the founder of Lindsell Train, told the newspaper that the move represented a "possible reduction of dividend stream".
"The fact is the company is not offering a perpetuity guarantee that current Unilever plc shareholders will never suffer from any future change in Dutch tax policy," he said.
Dutch Prime Minister Mark Rutte announced plans last year to scrap the tax by 2020 but it has not drummed up much support.
Unilever told Reuters earlier this week that if the tax is not scrapped, it could use a “substitution payment mechanism” to distribute capital in a way that does not trigger the 15 percent tax.
Read more: Unilever shareholders to hold crunch vote on Netherlands move