In re the Voluntary Dissolution of Radom & Neidorff, Inc.

Appellate Division of the Supreme Court of New York

In re the Voluntary Dissolution of Radom & Neidorff, Inc.

282 A.D. 854, 124 N.Y.S.2d 424, 1953 N.Y. App. Div. LEXIS 5198

CourtAppellate Division of the Supreme Court of the State of New York

DecidedOctober 6, 1953

StatusPublished

This text of 282 A.D. 854 (In re the Voluntary Dissolution of Radom & Neidorff, Inc.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

In re the Voluntary Dissolution of Radom & Neidorff, Inc., 282 A.D. 854, 124 N.Y.S.2d 424, 1953 N.Y. App. Div. LEXIS 5198 (N.Y. Ct. App. 1953).

Pincite

Opinion

Order unanimously reversed, with $20 costs and disbursements to the appellant, and the petition dismissed. The petition and affidavits offered in support thereof do not make it clear that the stockholders are hopelessly deadlocked. Certainly the corporation’s activities have not been paralyzed thereby. In the three years since the alleged futile attempt to elect directors it has made net profits larger than in the earlier past. On argument it was conceded that its net assets had tripled in the same period. The failure of petitioner [respondent] to receive his salary involves no frustration of any important corporate activity, and with respect to such salary petitioner has remedies other than dissolution of the corporation. The stay was improper on any theory that has been suggested. The dismissal of the petition is without prejudice, however, to the bringing of another proceeding should deadlock in fact arise in the selection of a board of directors, at a meeting of stockholders to be duly called or if other deadlock should occur threatening impairment or in fact impairing the economic operations of the corporation. Present — -Peck, P. J., Glennon, Cohn, Breitel and Botein, JJ. [See post, p. 873.]

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Order unanimously reversed, with $20 costs and disbursements to the appellant, and the petition dismissed. The petition and affidavits offered in support thereof do not make it clear that the stockholders are hopelessly deadlocked. Certainly the corporation’s activities have not been paralyzed thereby. In the three years since the alleged futile attempt to elect directors it has made net profits larger than in the earlier past. On argument it was conceded that its net assets had tripled in the same period. The failure of petitioner [respondent] to receive his salary involves no frustration of any important corporate activity, and with respect to such salary petitioner has remedies other than dissolution of the corporation. The stay was improper on any theory that has been suggested. The dismissal of the petition is without prejudice, however, to the bringing of another proceeding should deadlock in fact arise in the selection of a board of directors, at a meeting of stockholders to be duly called or if other deadlock should occur threatening impairment or in fact impairing the economic operations of the corporation. Present — -Peck, P. J., Glennon, Cohn, Breitel and Botein, JJ. [See post, p. 873.]

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Bluebook (online)

282 A.D. 854, 124 N.Y.S.2d 424, 1953 N.Y. App. Div. LEXIS 5198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-voluntary-dissolution-of-radom-neidorff-inc-nyappdiv-1953.