Shell plc submits updated Form 20-Fs for 2023 and 2024 to SEC

The U.S. Securities and Exchange Commission revealed some significant findings in their report released on July 2, 2025. The report, focused on the 2023/24 Form 20-F/As, brought to light several key points. One of the main takeaways was regarding the level of detail provided by companies in their disclosure documents.

Companies were found to have varying levels of detail in their disclosures, with some providing robust information while others fell short. This inconsistency raised concerns about the transparency and reliability of the information being presented to investors. The SEC emphasized the importance of clear and comprehensive disclosure to ensure that investors have access to all pertinent information when making investment decisions.

Another important aspect highlighted in the report was the quality of financial reporting. The SEC noted that companies need to improve the quality of their financial reporting to provide a true and fair view of their financial position. Inaccurate or misleading financial statements can have serious implications for investors and the market as a whole. Therefore, companies must ensure the accuracy and integrity of their financial reporting to maintain investor confidence.

Additionally, the report addressed the issue of internal controls over financial reporting. The SEC emphasized the importance of strong internal controls to prevent and detect financial misstatements. Companies were urged to reassess and enhance their internal control procedures to mitigate the risk of errors or fraudulent activities. Weak internal controls can undermine the reliability of financial information, impacting investor trust and market stability.

The SEC also stressed the significance of corporate governance in ensuring accountability and transparency within companies. Effective corporate governance structures are essential for maintaining ethical standards and promoting investor confidence. The report called for companies to enhance their corporate governance practices to uphold integrity and accountability at all levels of the organization.

Overall, the SEC’s report highlighted the need for companies to prioritize transparency, accuracy, and integrity in their disclosure and reporting practices. By providing clear and comprehensive information, companies can build trust with investors and uphold the integrity of the financial markets. Strong internal controls, robust financial reporting, and effective corporate governance are essential components of a reliable and trustworthy financial system. Companies must heed the SEC’s recommendations and take proactive steps to improve their disclosure, reporting, and governance practices to safeguard investor interests and maintain market integrity.