Tyco Reported To Be Considering Cutting Bermuda Ties

by Mike Godfrey, Tax-News.com, Washington

29 January 2003

It has been reported that Tyco International is considering cutting its ties with Bermuda and relocating to the United States, despite the fact that the company is currently opposing a shareholder proposal which would see it reincorporate in Delaware.

According to the Financial Times and the Bermudian media on Friday, whilst recommending that shareholders reject the proposed resolution, the company announced that it still intends to evaluate whether such a move would be worthwhile.

Tyco announced in a recent regulatory filing that its next annual meeting, during which four new directors will be elected under new CEO Ed Breen, will be held in March.

However, it revealed that it has not, as yet, reviewed its Bermuda registration, which critics such as the American Federation of State, County and Municipal Employees have argued : 'makes it more difficult for shareholders to hold companies, their officers and directors legally accountable in the event of wrongdoing'.

Recommended