- 11 - Both petitioner and respondent rely on the October 24, 1988, 11:00 a.m. meeting and the events on the day of the sale to JSL to substantiate their assertions. Respondent contends that the transcript of the October 24, 1988, 11:00 a.m. meeting contains no reference to liquidation and establishes that petitioner intended to continue business. Respondent relies on the shareholders' discussion about which geographical areas to exclude from the noncompetition agreement in the JSL contract and the subsequent exclusion of those areas in the contract. Petitioner argues that the noncompetition agreement was added at the request of JSL and therefore is not evidence of an intent to continue business. Petitioner fails to acknowledge, however, that it was the ACT shareholders who specified which areas they wanted excluded from the agreement. The specified areas excluded from the agreement with JSL covered the same areas as the ACT cable TV franchise rights contracts that were not sold to JSL. Further evidence of ACT's intention to continue business are Briggs' statements during the October 24, 1988, 11:00 a.m. meeting. Briggs stated: "Well, the corporation will still be alive after this [the JSL sale]. Because the corporation also still has the county franchise in it." Referring to the county franchise and the contracts excluded from the noncompetition agreement, Briggs stated: "Sooner or later we are gonna have to build the system or else total credibility is gone. And this isPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011