Which of the following is required in order for a transaction to be considered a corporate inversion?
A)A foreign corporation acquires substantially all of the assets of a U.S. corporation.
B)Former shareholders of the U.S. corporation own 80% or more of the stock in the foreign corporation by reason of their U.S. stock ownership.
C)The former U.S. company and its affiliates do not conduct substantial business in the foreign country of incorporation.
D)All of the above are required.

Question

Quizplus · Accepted Answer

All of the above conditions are required for a transaction to be considered a corporate inversion. A foreign corporation acquiring substantially all of the assets of a U.S. corporation alone does not constitute a corporate inversion. Similarly, if former U.S. shareholders do not own 80% or more of the stock in the foreign corporation, it will not be considered a corporate inversion. Lastly, the former U.S. company and its affiliates not conducting substantial business in the foreign country of incorporation is also a necessary condition for a transaction to be classified as a corporate inversion.

Which of the Following Is Required in Order for a Transaction