Tax authorities in recent weeks served notices on oil company Royal Dutch Shell PLC and U.K.-based Vodafone Group PLC saying they owe higher taxes than they paid because they undervalued the transfer of shares between their Indian subsidiaries and other overseas units.

WSJ: India Says Cadbury Used Phantom Factory to Avoid Taxes

While Shell was once seen as a model of good management, some investors have in recent years criticised its complicated two-company structure: Royal Dutch Petroleum, based in the Netherlands, owns 60% of the group and London-based Shell Transport and Trading the remaining 40%, with operational management reporting to both boards.

ECONOMIST: Another head rolls in the boardroom | The