The governance of GVC Holdings has this morning confirmed that it has scheduled an ‘extraordinary general meeting’ on 6 February (9 am CET), to vote on relocating the firm’s management control and tax residence from the Isle of man to its UK headquarters.
GVC Holdings was incorporated as an Isle of Man enterprise in 2010, in which it maintained its management control benefitting from a more suitable tax regime for its business purposes.
However, publishing its EGM document, GVC reveals that certain Isle of Mann governance conditions have become a constraint with regards to how and where the Directors are able to manage the Company.
GVC details that directorial restrictions have led to ‘administrative burdens’, related to among other things requiring that Board meetings be conducted outside of the UK and limiting who the Company is able to appoint to the Board as Chairman.
Should GVC transfer its management control to the UK, the FTSE firm would be able to remove existing corporate directorial restraints.
Further benefits underlined by GVC governance details that the company would benefit from improved internal/external corporate communications, whilst improving its logistical capacities managing the company from the UK, which in turn would reduce corporate costs.
Closing its statement, GVC details that changes to tax regimes across its operating markets underscore that there is no longer a significant benefit in being tax resident in the Isle of Man
“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.” – GVC details in its EGM statement.