A Broader View of Corporate Inversions: The Interplay of Tax, Corporate and Economic Implications


Orsolya Kun


Multinational corporations have, in substantial numbers, moved their corporate residence from the U.S. to Bermuda, for the purpuse of minimizing U.S. taxation on their worldwide income. This study reviews the forms of these "corporate inversion transactions," and explores their tax implications, as well as their corporate governance implications and motivations. It is the first scholarly study to examine the corporate governance implications of inversions, and it concludes that previously unexplored aspects of the change of corporate domicile result in substantial reduction of accountability of directors and officers and significant impediments to enforcement of shareholder rights.


Business Organizations Law | International Law | International Trade Law | Taxation-Federal | Taxation-Transnational

Date of this Version

September 2003