- 4 - stock in Niesar Pahl. Each agreed to pay one-quarter of the audited book value of the firm for his shares. A meeting of the board of directors of Niesar Pahl (the board) was held on August 3, 1989 (the August 3 meeting). At the August 3 meeting, the board determined and resolved the following (as evidenced in the minutes of the August 3 meeting): WHEREAS, this Board of Directors has determined that the issuance of additional stock in the corporation would benefit the corporation; and WHEREAS, this Board has determined that Thomas M. Gosselin and Stephen D. Pahl are suitable shareholders whose participation would benefit the corporation and each is an active member of the California Bar; and NOW, THEREFORE, BE IT RESOLVED, that the corporation shall issue and sell to each of Thomas M. Gosselin and Stephen D. Pahl one thousand (1,000) shares of common stock, such action to take effect on August 9, 1989; and FURTHER RESOLVED, that the price to be paid by Messrs, Pahl and Gosselin for such shares shall be determined by an audit of this corporation’s balance sheet as at July 31, 1989; and FURTHER RESOLVED, that each of Messrs. Pahl and Gosselin shall pay in cash, the amount equal to * * * [one-quarter] of the net worth of the corporation as determined by reference to such audited balance sheet as at July 31, 1989, as and for the total purchase price of said purchasers’ [sic] shares of common stock. At the August 3 meeting, the board also (1) elected petitioner a director of Niesar Pahl, effective August 9, 1989, and (2) authorized petitioner to negotiate an extension of credit to Niesar Pahl of $500,000 from Silicon Valley Bank (the bank) and to sign notes, agreements, or other documents as necessary to secure such credit.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011