- -4 divorced prior to the trial of this case. Each of the Penalbas held 50 percent of petitioner's stock during the years 1988 through 1990. The initial investment of the Penalbas in petitioner's stock was a total of approximately $15,000. When petitioner first began its operations, its conversion was all done through commissioned knitting, dyeing, and finishing plants. After 1987, petitioner stopped selling woven fabrics and started selling only knitted fabrics. In 1990, petitioner was involved in some resales of both gray goods and finished goods. Mrs. Penalba was the chief financial officer and secretary of petitioner during its fiscal years 1987 through 1990, and Mr. Penalba was its president during those years. Petitioner hired a bookkeeper in 1985. Sometime after the bookkeeper was hired, petitioner hired a receptionist who was trained in production. In 1987 or 1988, petitioner began to hire outside salespeople. Petitioner designed its own fabrics, and most of the fabrics it sold to customers were of petitioner's own designs. Both Mr. or Mrs. Penalba would discuss development of a fabric which was being designed, but Mr. Penalba actually designed the fabric. Mr. Penalba would determine such aspects of the fabric as the type of thread to be used, the construction needed for the fabric, whether the fabric needed stretchability on the width or length, or whether the fabric was to be top or bottom weighted. Mr. Penalba was responsible for selecting the proper yarns, the proper equipment, the knitting weights, and the work requirementsPage: 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