-6-
in 1992. A member of the fifth generation works for Fort Mill, a
subsidiary of Rock Hill.
2. The Voting Trust
Frank Barnes, Jr., and his brothers intend to keep Rock Hill
as a family owned business. They control Rock Hill through a
voting trust. Frank Barnes, Sr., created the voting trust on
April 30, 1964, to ensure that 52 percent of Rock Hill's voting
stock would vote as a unit. Frank Jr., Edwin, and John (the
Barneses), are the trustees of the trust and together own 52
percent of the voting stock of Rock Hill.
In 1992, the Barneses considered forming a holding company
to ensure that Rock Hill would remain in the family. They also
bought insurance (at a time not stated in the record) to avoid
being required to sell shares of Rock Hill to pay death taxes.
3. Rock Hill's Affiliates and Subsidiaries
In 1992, Rock Hill owned the following percentage of common
stock in Fort Mill Telephone Co., Lancaster Telephone Co., and
Home Telephone Co.:
Percent owned
by Rock Hill
Fort Mill Telephone Co. (Fort Mill) 48.0%
Lancaster Telephone Co. (Lancaster) 49.2
Home Telephone Co. (Home) 49.8
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Last modified: May 25, 2011