I really do not like the way shields are incorporated into the combat mechanic at all--never have.
The purpose of a shield is to block an attack(more or less). So, if my fighter does just so vs. the ogre swinging its giant club, my shield has just made contact with its weapon.
This does 2 things: (1) it prevents the club from striking me and, (2) takes the force of the blow itself.
It is #2 that is the point. Though the ogre "missed" me, it
hit my shield--
easily, since I was purposely placing my shield to take the blow.
So, it seems to me, that there should be an optional (fighting man only) mechanic of
Blocking via a shield. To keep it simple I would apply the following:
1. The fighting man (dwarf, hobbit too) can elect to "block" an attack in lieu of attacking himself that round. In doing so, he automatically takes 1 hp of damage from the blunt force for each HD difference between him and the attacker; attacks from beings/creatures of less or equal HD cause no damage. EX. a L3 FM with 13 hp elects to block a blow from a hill giant, taking 5 hp of damage rather than risking sustaining the 2-12 possible. (This mechanic-strategy gives the player of the Fighting Man one more tool in the toolbox.)
2. A magic shield will reduce the B-F damage by 1 point per each magical plus.
If considering using the above, one should not include the shield bonus to AC # needed to hit by any other opponents attacking the Fighting man.
This is a rough draft of a HR for The Lost Lands.