- 90 -
(2) Erie Lighting Co. v. Commissioner, 93 F.2d 883 (1st Cir.
1937), which held that preferred stock was not voting stock even
though it was entitled to certain voting rights upon the occur-
rence of certain events because those events had not occurred
during the years involved there;
(3) Vermont Hydro-Electric Corp. v. Commissioner, 29 B.T.A.
1006 (1934), which held that preferred stock was not voting stock
even though it was entitled to certain voting rights upon the
occurrence of certain events that had not occurred during the
years involved there because (a) stock is not voting stock based
on the mere possibility that sometime in the future it might be
entitled to vote, and (b) it is the situation actually existing
during the period in controversy that is determinative, not a
situation that might have existed upon the happening of a contin-
gency; and
(4) Rev. Rul. 64-251, 1964-2 C.B. 338, which held that
unexercised warrants to purchase stock in a corporation do not
constitute "stock ownership" within the meaning of section
1504(a) of the Internal Revenue Code of 1954 (1954 Code) because
they do not confer upon the holder any rights or liabilities as a
stockholder of that corporation prior to their being exercised.
We reject petitioners' position regarding the director
objectionable action provision. We find significant distinctions
between the rights held by the Mitsui group under the director
Page: Previous 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 NextLast modified: May 25, 2011