Tyco to stay incorporated in Bermuda
April 1, 2004
PEMBROKE, Bermuda - At Tyco InternationalÃ¢â‚¬â„¢s annual general meeting of shareholders last week, shareholders rejected a proposal to move TycoÃ¢â‚¬â„¢s incorporation to the United States. Approximately 93 percent of shareholders voted against the proposition.
Earlier this year, a government employee labor union filed a resolution for the conglomerate to reincorporate in the United States. TycoÃ¢â‚¬â„¢s board of directors urged shareholders to vote against the initiative.
Tyco Chairman and Chief Executive Officer Edward D. Breen said the shareholders reached a decision only after careful evaluation of all the issues.
Many large corporations, such as Tyco, have relocated offshore, where tax liability is divided among the locations where business is conducted. Offshore tax havens also may allow companies to maximize shareholder benefits.
Tyco, a provider of electronic security and fire prevention services, incorporated in Bermuda in 1997, after its acquisition of ADT Security Services.