Estate of H.A. True, Jr. - Page 220




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              Once triggered by Jean True’s notice, the buy-sell                      
          agreements required Jean True to sell, and her sons to purchase,            
          her interests.  Each of the buy-sell agreements provided that the           
          “effective date” of the resulting sale was the applicable notice            
          date.                                                                       
              Although the buy-sell agreements defined the effective dates            
          of Jean True’s sales as the notice dates, other provisions of the           
          buy-sell agreements required only that the “sale and purchase” of           
          stock or partnership interests “be consummated” within 6 months             
          after those dates.  In fact, Jean True did not receive payment              
          for her stock and partnership interests until September 30, 1994            
          (payment date).                                                             
              The record does not establish exactly what happened on or               
          around the payment date, other than the receipt of payment by               
          Jean True.  It appears that the reissuance of stock certificates            
          to the sons was authorized by the corporations’ boards of                   
          directors on September 29, 1994.  However, the minutes of the               
          board meetings authorizing this action refer to “the transfer of            
          the shares formerly owned” by Jean True, and state that                     
          “appropriate action should be taken * * * to accept and                     
          acknowledge the transfer of ownership that occurred effective               
          June 30, 1994".  The accompanying board resolutions similarly               
          discuss the “sale and transfer effective June 30, 1994" of “the             
          shares previously held” by Jean True.                                       







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Last modified: May 25, 2011