-144-
$10,000 for GHM, or (3) recall whether the board of directors
held meetings at GHM or the membership of the board. Connolly,
Transcr. at 2650-2653.
h. Essex Partnership Operations
Essex Partnership’s stated purposes were (1) “To engage
generally in the consulting business and as a liaison
intermediary between owners and operators of hotel properties”,
and (2) “To enter into other partnership agreements * * *, to
become a member of a joint venture, or to participate in some
other form of syndication for investment; and to buy, sell,
lease, and deal in services, personal property, and real
property.” Exh. 347. Although the partnership agreement
required its partners to contribute the capital needed to operate
the partnership, very little, if any, actual capital
contributions were ever required from them. There is no evidence
that IRA or THC contributed any capital to Essex Partnership.
Petitioners’ Reply Brief at 457.
Essex Partnership had no office, equipment, or employees
because employees of MHM performed many of the consulting
services that GHM needed. John Formby, an accountant working for
Lexington Investment Co., provided services to MHM and was given
a power of attorney to act on behalf of Essex Partnership.
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