- 3 - Background1 VAPARO, Inc. (Vaparo), is a closely held corporation organized under the laws of the State of New York. Vaparo was formed with one class of stock, one-half of which was owned by Decedent and one-half of which was owned by her son (Son). Vaparo was recapitalized on December 20, 1983, with three classes of stock. Each share of the first class, class A stock, was assigned a par value of $1. Each share of the second class, class B common stock, was valued at $0.2 The third class, noncumulative convertible preferred stock, was assigned Vaparo's remaining value, giving each of the preferred shares a value of $5,000. Immediately after Vaparo's recapitalization, its stock was owned as follows: Shares of Shares of Shares of Class A Class B Preferred Shareholder Stock Common Stock Stock Son 50 5,000 500 Decedent 50 5,000 500 After the recapitalization, but before September 1, 1987, Decedent gave away all of her Vaparo stock, less 470 shares of 1 The stipulations and attached exhibits are incorporated herein by this reference. Decedent resided (and her will was probated) in New Jersey. The executrix resided in Brooklyn, New York, when she petitioned the Court. 2 Under the recapitalization, all future appreciation of Vaparo was assigned to the class B common stock.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011