Governance Problems at Royal Dutch/Shell |
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Introduction Contd...
They found that the bi-national Dutch/English ownership structure of Shell with two boards and a Committee of Managing Directors had resulted in lower accountability. Absence of clearly defined roles and responsibilities of the top management made misrepresentation easier. A few analysts believed that Shell would benefit greatly by changing its organizational structure so as to have a single board.
8] On April 22, 2004, Moody announced that it was downgrading long-term debt ratings of the Shell group from Aaa to Aa1 because of the company's weaker position in relation to its competitors due to the lowering of its proven energy reserves. Another credit rating agency, Standard and Poor, had already downgraded its rating for the group from 'AAA' to 'AA plus.' Soon after Moody, Fitch also downgraded its ratings for the group to 'AA plus' from 'AAA.'
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