Protests mount over Unilever’s plan to go Dutch

AnOTHer major investor in Unilever is preparing to vote against the plot to axe its UK HQ amid a growing backlash.

Fund managers at Standard life Aberdeen ( SlA) are understood to have serious concerns about the Marmite maker’s plans to abandon Britain for a sole legal base in the netherlands.

And some of SlA’s biggest funds are expected to vote against the deal as they believe it will hurt their customers.

it is a fresh blow for Unilever boss Paul Polman, who faces opposition from some of the City’s biggest names including Aviva investors, Columbia Threadneedle and M&G.

David Cumming, chief investment officer at Aviva, last night told Sky news he expects Unilever to lose the vote.

Unilever wants to axe a British headquarters that dates from victorian times and base itself solely in rotterdam.

But the plan has triggered major concerns among British investors who fear they could be forced to pay higher taxes under Dutch law.

Many foreign shareholders currently pay a 15pc ‘withholding tax’ on dividends, which would sting UK investors.

The Dutch government has pledged to scrap this but faces a backlash from voters. Bosses at Unilever say it has found a loophole to pay British shareholders even if the authorities U-turn, but many doubt they will be safe for ever.

The company will also be kicked out of the blue- chip FTSe 100 if the scheme goes ahead, meaning many funds which are only allowed to own stocks in the index will be forced to sell at any price.

Alison McGovern, MP for Wirral South which includes Unilever’s registered UK office at Port Sunlight, said: ‘Anyone who works in manufacturing in Merseyside – Unilever’s historic home – will rightly be alarmed by this.

‘How many more businesses will we find out are struggling or leaving the UK before we end the Brexit chaos?’

SlA, a top-ten shareholder with a Unilever stake of around 1.4pc, is expected to allow individual fund managers to vote in different ways based on what they think will be best for their clients.

Some of its funds would have to sell up if the UK headquarters is axed, while others would be unaffected.

Unilever investors who own its london-listed shares will be asked to vote next month, and the firm must get 75pc support for the plan to go ahead.