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Read’s direction as reflected in his election under the divorce
judgment that she transfer her MMP stock to MMP. Absent Mr.
Read’s election, Ms. Read was obligated under that judgment to
transfer that stock to Mr. Read. We hold that Ms. Read's trans-
fer to MMP of her MMP stock was a transfer of property by Ms.
Read to a third party on behalf of Mr. Read within the meaning of
Q&A-9.
26(...continued)
MMP, instead of Mr. Read, purchase her MMP stock. If Ms. Read
wanted or preferred to have MMP, rather than Mr. Read, purchase
her MMP stock, we believe that Ms. Read would have negotiated a
property settlement that would have been reflected in the divorce
judgment under which (1) Ms. Read would have been required to
sell her MMP stock to MMP and MMP would have been required to
give her cash and a note that was guaranteed by Mr. Read or
(2) Ms. Read would have been required to sell her MMP stock to
Mr. Read and MMP would have been required to guarantee the note
that Mr. Read issued to Ms. Read (along with cash) in order to
pay her for her MMP stock. At a minimum, if Ms. Read wanted or
preferred to sell her MMP stock to MMP, instead of to Mr. Read,
Ms. Read would have negotiated a property settlement that would
have been reflected in the divorce judgment under which Ms. Read,
and not Mr. Read, would have been given the option of requiring
(1) that she sell her MMP stock to MMP and (2) that MMP, and not
Mr. Read, give her cash and a note that was guaranteed by Mr.
Read. The record in the instant cases is clear: The only reason
Ms. Read transferred her MMP stock to MMP was because Mr. Read
wanted, and directed, her to do so by electing that she transfer
that stock to MMP.
Even assuming arguendo that Ms. Read’s transfer of her MMP
stock to MMP was in the interest of Ms. Read, and not in the
interest of Mr. Read, a suggestion that is not supported and is
in fact rejected by the record in the instant cases, Ms. Read was
nonetheless acting as Mr. Read’s representative--another common,
ordinary meaning of the phrase “on behalf of”--in making that
transfer to MMP. That is because she was following and
implementing Mr. Read’s direction as reflected in his election
under the divorce judgment that she transfer her MMP stock to
MMP, which stock, absent Mr. Read’s direction, Ms. Read was
obligated to transfer to Mr. Read.
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