Home care and personal care brand produced manufacturer Unilever announces the outcome of the final stage of its review of corporate governance and structure. Two previous stages concentrated on its board and leadership structure.
Following a review of its current corporate structure, the Unilever Board concluded that the current structure, with some important changes, meets the needs of the business for the foreseeable future. It provides fiscal flexibility and does not hinder the operation of the business, decision-making or organisational efficiency, all of which have been substantially strengthened by the changes introduced at this year's AGMs.
Alternative unitary structures would not today offer compelling benefits. The Board has therefore decided that the NV/PLC structure is well-placed to meet the needs of Unilever's business and the interests of shareholders.
The changes they are proposing will enhance balance sheet and capital structure flexibility and further improve elements of their corporate governance.
Specifically, the Board has decided that to adapt Unilever's constitutional arrangements to allow greater flexibility to allocate assets between both parent companies. This will ensure that Unilever continues to be able to return capital to shareholders and to pay dividends in the most efficient manner.
To simplify the relationship between their PLC and NV shares by establishing a one-to-one equivalence in their underlying economic value. This will create transparency between the quotations of their various shares and will be achieved by a split of the NV shares and a consolidation of the PLC shares.
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