Corporate Governance: The Option to Incorporate Outside the U.S.

NY Times DealBook has an intriguing note about the recent decision by the New York Stock Exchange listed fashion company, Michael Kors Holdings, to reincorporate in the British Virgin Islands.

Reasons to incorporate outside the U.S. include:  avoiding unfavorable U.S. tax laws and securities laws aimed at transparency, disclosure, and investor protection -- as well as a desire to avoid the intensely litigation-focused approach to problem-solving in the U.S.

What's the impact on U.S. investors who expect legal protections?

LInk to "The Benefits of Incorporating Abroad in an Age of Globalization" by Deal Prof. Steven Davidoff:  http://dealbook.nytimes.com/2011/12/20/the-benefits-of-incorporating-abroad-in-an-age-of-globalization/?nl=business&emc=dlbka33

(ag) Dec. 21, 2011, in Corporate Governance, Securities Law, Global Markets