GVC Holdings’ governance has called an ‘extraordinary general meeting’ on 6 February to vote to move the management control and tax residence of the company from the Isle of Man to its headquarters in the UK.
In 2010 GVC Holdings was incorporated as an Isle of Man company, where it maintained its management control to benefit from a more appropriate tax regime for its business purposes.
However, when GVC publishes its EGM document, it reveals that certain governance conditions on Isle of Mann have become a constraint with regard to how and where the directors are able to manage the company.
GVC explains that directorial constraints have resulted in’ administrative burdens’ related to, among other things, requiring Board meetings to be held outside the UK and restricting who the Company may nominate as Chairman to the Board.
Should GVC shift its management authority to the United Kingdom, it would be necessary for the FTSE firm to lift internal business directorial constraints.
More benefits underlined by GVC governance information that the company would benefit from better internal / external corporate communications while enhancing its logistical capabilities by running the company from the UK, which would in turn reduce operating costs.
Closing its argument, GVC explains that shifts in tax regimes across its operating markets reinforce that tax residents on the Isle of Man no longer have a significant advantage.
“The Board believes that if the Company becomes UK tax resident, this should have no material adverse impact on the GVC group’s effective tax rate or tax cash outflow for the foreseeable future,” read the statement.