NEW YORK (Reuters) - Ingersoll-Rand Co will ask its shareholders for approval to move its incorporation from Bermuda to Ireland, the maker of climate control equipment said yesterday.

Such a move would take advantage of Ireland's membership in the European Union, a strong legal system, and a stable legal and regulatory environment, the company said. The company already employs about 700 people in Ireland, including a manufacturing plant and a service centre.

"This decision ... provides us with many financial, strategic and operational benefits," chief executive Herb Henkel said in a statement. The first step in the reorganisation is the establishment of Ingersoll Rand's tax residency in Ireland, then shareholders will be asked to vote in favour of completing the reorganisation. Ingersoll-Rand Plc, an Irish incorporated company, would then replace Ingersoll-Rand Company Ltd. as the parent company.

Several multinational companies in recent months have said they would reincorporate from Bermuda to Ireland or Switzerland, including Tyco International Ltd, Tyco Electronics Ltd., Weatherford International Ltd and Foster Wheeler Ltd.

Experts have said such moves are intended to seek more favourable tax treatment, amid concerns about changes in US tax laws.