- 14 - Petitioner argues in the alternative: Decedent did not own the 567 shares that were redeemed in 1987 (ownership argument); the redemption transaction was not a completed gift in 1987 because a breach of fiduciary duty owed to decedent occurred or decedent was defrauded and either or both events would entitle decedent to rescind the transaction (incomplete gift argument); and, finally, the redemption price was either full and adequate consideration for decedent’s interest in the 567 shares or alternatively was a bad business bargain. Respondent argues that petitioner should be precluded from raising or relying on the argument that decedent was not the full beneficial owner of the redeemed stock. Petitioner’s counsel on brief now asserts: Respondent’s argument rests on the erroneous belief that the 567 PCAB shares redeemed in 1987 were owned by Mary Maggos. They were not. Mary Maggos neither owned these 567 PCAB shares nor had power to exercise control over the stock consistent with ownership. Rather, the 8(...continued) corporation. If B himself is a stockholder, the transfer is a gift to him from the other stockholders but only to the extent it exceeds B’s own interest in such amount as a shareholder. A transfer of property by B to a corporation generally represents gifts by B to the other individual shareholders of the corporation to the extent of their proportionate interests in the corporation. However, there may be an exception to this rule, such as a transfer made by an individual to a charitable, public, political or similar organization which may constitute a gift to the organization as a single entity, depending upon the facts and circumstances in the particular case. [Emphasis added.]Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011