- 5 - in its G�nther stock, before taking into account the amounts at issue in this case, was $7,374,438. III. G�nther's Management and Operations G�nther’s gesch�ftsf�hrer, Albert G�nther (Albert), and its procurist, Hans Kampfrad (Kampfrad), controlled G�nther’s day-to- day management and operations.6 Albert reported directly to Flint’s president. Most of G�nther’s products were switches, relays, and sensor devices such as those used for air bags and braking systems. The market for these products was highly cost-sensitive because G�nther had several competitors that made similar products. At some point before 1992, G�nther was an industry leader in air bag sensor technology. Subsequently, however, new products superseded G�nther's technology and eroded its competitive advantage. Although G�nther owned patents for some of its manufacturing processes, by May 31, 1992, G�nther's patents had 5(...continued) German law, states that G�nther is a wholly owned subsidiary of Gordos International Corp., and G�nther’s commercial report for its FYE April 30, 1992, states that G�nther’s share capital was transferred from Gordos International Corp. to Flint Electronics Co. We accept the parties’ stipulation, however, because the relevant facts regarding G�nther’s ownership by a member of the affiliated group and petitioner’s adjusted basis in G�nther’s stock are not in dispute. 6The positions of gesch�ftsf�hrer and procurist in a German GmbH are similar to those of general manager and controller in a U.S. company. However, because the gesch�ftsf�hrer and procurist were the only members of G�nther’s senior management, they had considerably more power and authority.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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