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Corporations Keyed to Hazen
Whiting v. Dow Chemical Company
Citation:523 F.2d 680 (2d Cir. 1975)
Macauley Whiting has been a director of Dow since 1959. The resources of both husband and wife are significantly directed toward their common prosperity, and they easily communicate concerning matters which relate to that prosperity. Moreover, the Whitings’ separate accounts are managed by the same financial advisors. The Whitings file joint tax returns, and their common financial planning has included Mrs. Whiting’s use of her husband’s annual gift tax exclusion to make charitable gifts to trusts established for their six children. Since January 1966, Mr. Whiting was required to make as a Dow director, he regularly reported his wife’s Dow stock as directly owned by him, and never disclaimed ownership as he might have pursuant to SEC regulations, a procedure of which he was made aware by Dow’s counsel.
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