Megablast Inc. trades internationally as a manufacturer and distributor of electrical goods ranging from consumer goods (TVs, washing machines, etc.), to electrical equipment and electronic components. Its shares are currently listed on the New York Stock Exchange, and it is subject to the Sarbanes-Oxley legislation and lots of other listing rules. The CEO, Lindsey Lovely, has been considering moving the operation to London and transferring the business to a new holding company listed on the London Stock Exchange. There are many tax and accounting issues, but the main one Lindsey is concerned about is the regulatory regime in the US. The auditors, international accounting firm Blockitt & Hope, approves of the move to London and is helping Lindsey with the decision.

Discussion
– Why would Blockitt & Hope be so keen to see Megablast relocate?
– What benefits would it bring to Megablast to do so?
– What ethical issues are involved?