- 6 -6 Petitioner's shareholders' equity is as follows: FYE Shareholders' Aug. 31 Equity 1981 $1,719,074 1982 2,070,404 1983 2,490,070 1984 3,191,644 1985 3,755,202 1986 4,243,775 1987 4,958,268 1988 5,523,189 1989 7,260,559 1990 6,251,019 1991 7,815,983 1992 10,163,504 Petitioner has never paid dividends. In the 1970's, petitioner and its shareholders borrowed funds to expand petitioner's facilities. The terms of the financing arrangement prohibited petitioner from paying dividends to its shareholders. In 1985, and again in 1987, petitioner entered into a bond guaranty agreement (guaranty agreement) with AmSouth Bank N.A. in connection with another expansion of petitioner's facilities. The guaranty agreement was operative through 1992, and it prohibited petitioner from paying dividends to its shareholders while the bonds were outstanding. 4. Ferguson's Executive Duties Ferguson became petitioner's president and chief executive officer (CEO) in 1988, after Bell's death. After becoming CEO, Ferguson continued to serve as petitioner's treasurer. In November 1988, petitioner created two additional vice president positions, for a total of three vice presidents, and the threePage: 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