Legislative update - Senate Finance chair to propose 50% stock ownership rule for inversions, effective May 8, 2014 

May 9:  In an opinion piece written by Senate Finance Committee Chairman Ron Wyden (D-OR), and appearing in today’s edition of the Wall Street Journal, Senator Wyden announced his intention to introduce legislation to amend U.S. law to require U.S. companies reincorporating overseas to have at least 50%—up from the current floor of 20%—of their stock owned by the new foreign entity.

This new 50% threshold would apply to all inversions taking place from May 8, 2014, and later.


Senator Wyden wrote:


Current law requires that U.S. companies reincorporating overseas must ensure that at least 20% of their stock is owned by their new, foreign partner. As chairman of the Senate Finance Committee, I am committed to raising this floor to at least 50% for all inversions taking place from May 8, 2014, on.



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