TTM03810 - Qualifying companies and ships: strategic management

Strategic management

The strategic management test displays features in common with the central management & control test for corporate residence, operating at a high level of decision making including

• decisions on significant capital expenditure and asset disposals (e.g. purchase and sale of ships)
• award of major contracts
• agreement on strategic alliances (e.g. shipping ‘conferences’ (see TTM15210) and vessel pooling)
• direction of foreign establishments.

Possible factors include

• location of headquarters, including senior management staff
• location of company board meetings
• location of operational board meetings
• residence of directors and key employees.

For strategic management to be in the UK, the UK directors and key personnel must have effective independent power to make strategic decisions, genuinely and not just formally. It follows that a mere permanent establishment in the UK would be unlikely to satisfy the strategic management test, but this would be a question of fact.

References