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Corporations Keyed to O’Kelley
Gimpel v. Bolstein
Citation:
125 Misc. 2d 45 (1984)Facts
Gimpel Farms is a family corporation engaged in the dairy business. It was founded in 1931 by Louis Gimpel and control has not passed through his heirs of the second generation to his heirs of the third generation. David Gimpel died in 1980, leaving his voting stock to Robert and George and his non-voting stock to his wife Shirley. The family members have always participated actively in the management and daily operations of the company. Robert owns his stock by gift and bequest from his father. He was employed by the company in an important and sensitive managerial position until 1974, when he was discharged due to allegations that he had embezzled some $85,000. The defendants put forth substantial evidence to support these allegations. Robert rebuts them with a form of artful evasion properly characterized as a non-denial denial, that is, he never actually states that he did not embezzle the funds. Since that time, Robert has received no benefits from his ownership position which this obviously profitable company. The company has continued to adhere to its policy of not paying dividends and Robert has received not a penny.
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2m 27sTopic Outline 