21 February 2014

Why businesses choose multiple corporate citizenships

A number of multinationals have recently opted to split their legal, fiscal and other personalities between various countries. The latest to do so is Fiat. Now that the Italian carmaker is set to gain full control of Chrysler, it is to leave Italy, on paper at least, after 115 years. Its board recently voted to move the parent’s legal domicile to the Netherlands, its tax residence to Britain and its main stockmarket listing to New York. This copies a template Fiat used when its tractor unit was merged with an American rival and spun off as CNH Industrial.
Flexible corporate laws make the Netherlands very attractive as a legal base. They let companies tweak the balance of power between management, the board and shareholders to suit their needs, says Paul Cronheim, partner at our firm. Other attractions include the widespread use of English and a strong professional-services industry. Click here to read the full article. Source: The Economist, 21 February 2014