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Business Organizations Keyed to Allen
Perlman v. Feldmann
Citation:
219 F.2d 173 (2d Cir. 1955), cert. denied, 349 U.S. 952 (1955).Facts
Newport operated mills which produced sheets of steel for manufacturers of steel products. Feldmann was the dominant stockholder, chairman of the board of directors, and president of the corporation. In August 1950, Feldmann negotiated on behalf of himself and other members of his family to sell the controlling block of stock to end users of steel. The buyers, organized under the name “Wilport Company”, were interested in securing source of steel in a tight market created by the Korean War. Wilport paid $20 per share, however the over-the-counter market price had not exceeded $12 and the book value was $17.03.
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