Garmin Ltd. announced its board of directors unanimously approved moving the place of incorporation of the company from the Cayman Islands to Switzerland.
Garmin's shareholders will be asked to vote in favor of the proposed change in place of incorporation at a shareholders meeting, which is set for May 20.
"Following a thorough review, we have determined that it is in the best interest of Garmin and its shareholders to change the jurisdiction of incorporation of our group parent company to Switzerland," said Dr. Min Kao, chairman and CEO of Garmin, in a statement. "Switzerland is centrally located in Europe in close proximity to our major Western and Eastern European markets."
Garmin said it does not expect that the redomestication will have any material impact on its financial results. Assuming completion of the redomestication, shares of the Swiss company would be listed on the Nasdaq Global Select Market under the symbol GRMN, the same symbol under which Garmin shares are currently listed.
The Swiss company would remain subject to the U.S. Securities and Exchange Commission reporting requirements, the mandates of the Sarbanes-Oxley Act and the applicable corporate governance rules of Nasdaq.
In addition, the Swiss company would continue to report its consolidated financial results in U.S. dollars and under U.S. generally accepted accounting principles.
Garmin Ltd. also announced its board approved the payment of a 2010 annual cash dividend in the amount of $1.50 per share, a one-time increase from 75 cents per share. The dividend is payable to shareholders of record on April 15 and will be paid on April 30.