Sir Philip Watts, the embattled chairman of Royal Dutch/Shell, was yesterday forced to resign - less than two months after the Anglo-Dutch energy group slashed its oil and natural gas reserves by 20 per cent.

Members of its Dutch board were said to have seized the initiative in the battle over the governance of the world's third-largest listed energy group, which has faced calls from investors to unify its complex dual board structure.

Sir Philip's dismissal paved the way for the first Dutchman to head the company since 1997. Jeroen van der Veer, head of chemicals and president of Royal Dutch, will become chairman.

The surprise announcement came after severe pressure had been put on the company by angry investors and the launch of an investigation by the US Securities and Exchange Commission.