3 Petitioner was formed on September 2, 1983, under New York business corporation law. Petitioner uses the accrual method of accounting. Petitioner is a cooperative housing corporation under section 216(b)(1) and is not tax-exempt under section 501. Petitioner's certificate of incorporation was filed on August 30, 1983, and was amended on May 7, 1984. Petitioner's certificate of incorporation states in part that it was formed to provide homes for its stockholders by leasing apartments to them under proprietary leases that entitle them to live in the building. Petitioner's certificate of incorporation authorizes petitioner to issue 70,000 shares of one class of common stock at a par value of $1 each. Petitioner may make distributions to its shareholders only from its earnings and profits unless petitioner is completely or partially liquidated. Petitioner's bylaws did not authorize it to pay patronage dividends to its members in the years at issue. Petitioner's bylaws have no provisions relating to whether petitioner may distribute net earnings to its tenant-shareholders. Petitioner has no rules or regulations requiring it to distribute patronage dividends to its tenant-shareholders. Petitioner could use net earnings to reduce maintenance. Petitioner has never paid or allocated "net margins" (the excess of its operating revenues over its cost of operations) to itsPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011