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Business Planning Keyed to Gevurtz
Rafe v. Hindin
Citation:
29 A.D.2d 481, 288 N.Y.S.2d 662 (1968)Facts
In November 1963, William Rafe and Seymour Hindin formed a corporation to purchase and develop real property in Port Jefferson Station, New York. Each owned 50% of the outstanding stock with certificates containing a legend, signed by both parties, making the stock non-transferable except to the other stockholder and requiring written permission from the other stockholder for any transfer to a third party. In April 1967, Rafe, facing financial difficulties, found a prospective purchaser willing to buy his stock for $44,000. Rafe offered to sell his shares to Hindin at that price, but Hindin refused to buy the stock and also refused to consent to the sale to Rafe’s prospective purchaser. Rafe then sued to have the transfer restriction declared void.
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