Directors' meetings

David Hughes considers the importance of directors meetings in relation to the determination of where a company is resident 

De Beers: the case law test

De Beers Consolidated Mines Ltd v Howe (Surveyor of Taxes) 5 TC 198 is often quoted as authority for the rule that a company is resident where its board of directors meet, provided that the real business of the company is carried on at those meetings. This rule enunciated over a century ago still prevails in the determination of the corporate residence status of foreign incorporated companies and in most instances, the preliminary determination of such a company’s residence may simply involve an investigation into those meetings.