Corporate Inversions: Considerations Other Than Tax Benefits
Orange County partner Larry Cerutti and associate Jason Lee’s article – “Corporate Inversions: Considerations Other Than Tax Benefits” – appeared September 24 in Bloomberg BNA’s Corporate Counsel Weekly.
“… Corporate inversions generally reduce U.S. income taxes for, and are therefore beneficial to, U.S. corporations,” Larry and Jason contend. “However, before a corporation’s directors and/or shareholders decide to complete a corporate inversion, we believe they must undertake a detailed review of the implications for the company, its directors and shareholders under the legal regime of the corporation’s proposed new foreign jurisdiction and, for those corporations that are publicly traded, a detailed review of how such a transaction may affect the corporation’s Securities and Exchange Commission reporting requirements.”
The article then provides an overview of these things, concluding that “[d]irectors have a duty to attempt, within the law, to maximize corporate profits and shareholder wealth.”