Consultancy firm Accenture announced yesterday that its board of directors had unanimously approved changing the company’s place of incorporation to Ireland from Bermuda.
The company’s shareholders will be asked to vote in favour of the proposed move at a meeting set to be held in the coming three to four months. Accenture said it expects Accenture plc, an Irish company, to replace Accenture Ltd as Accenture’s parent company shortly after shareholder approval of the move.
“After a careful review, our board of directors has determined that changing our place of incorporation to Ireland is in the best interests of Accenture and our shareholders. We believe that incorporating in Ireland will provide Accenture with economic benefits and help ensure our continued global competitiveness,” said William D Green, Accenture’s chairman & CEO.
“A member of the European Union, Ireland offers a sophisticated, well-developed corporate, legal and regulatory environment. It also has a long history of international investment and long-established commercial relationships, trade agreements and tax treaties with European Union member states, the US and other countries around the world where Accenture does business. In addition, Ireland offers a stable political and economic environment and has the financial and legal infrastructure to meet Accenture’s needs, both today and in the future,” Green said.
Ireland is part of Accenture’s largest geographic region, Europe/Middle East/Africa (EMEA), which accounts for nearly half of the company’s total net revenues and is home to many of its largest clients.
Accenture said it does not expect any material change in its operations, financial results or tax treatment as a result of switching its place of incorporation from Bermuda to Ireland. The company will continue to be registered with the US Securities and Exchange Commission (SEC) and will be subject to the same SEC reporting requirements.
Accenture has had an Irish operation for over 40 years, establishing in the country in 1969. The company currently employs some 1,500 people in Ireland and serves a wide range on clients, including the Irish Government.
Accenture operates worldwide, employing approximately 180,000 people. It generated net revenues of US$23.39bn in its 2008 financial year.