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In the Matter of Musano

Appellate Division of the Supreme Court of New York, First Department
Apr 20, 2006
28 A.D.3d 349 (N.Y. App. Div. 2006)

Opinion

8333.

April 20, 2006.

Order, Supreme Court, Bronx County (Alan J. Saks, J.), entered February 18, 2005, which, to the extent appealed from, held that the issuance of 95 corporate shares after commencement of this proceeding was null and void under Business Corporation Law § 1114, which further denied petitioner's motion for an injunction against Frank Cieri and anyone working under him transacting business on behalf of the corporation, for appointment of a receiver or fiscal agent to oversee the corporate operations and report to the court during the pendency of these proceedings, and for nullification of the shareholder agreement executed by John Sisto and Cieri, and which found that Cieri was a shareholder and de facto president of the corporation, but failed to determine the number of shares owned by petitioner, unanimously affirmed, without costs.

Menaker Herrmann LLP, New York (Samuel F. Abernethy of counsel), for appellant-respondent.

Patrick J. Bliss, White Plains, for respondent-appellant.

Before: Buckley, P.J., Marlow, Sullivan, Gonzalez and Sweeny, JJ.


Section 1114 applied to the issuance of the stock by a corporation during the pendency of the dissolution proceeding, inasmuch as it constituted an impermissible transfer of property ( see Matter of Rappaport, 110 AD2d 639, 641). The court's findings with respect to the operation of the corporation at this time were proper, with the understanding that should the parties be unable to reach a negotiated settlement pursuant to a purchase of petitioner's shares under Business Corporation Law § 1118, the parties could return for further proceedings.

We have considered the parties' remaining arguments for affirmative relief and find them without merit.


Summaries of

In the Matter of Musano

Appellate Division of the Supreme Court of New York, First Department
Apr 20, 2006
28 A.D.3d 349 (N.Y. App. Div. 2006)
Case details for

In the Matter of Musano

Case Details

Full title:In the Matter of ANNA MUSANO, Respondent-Appellant. SISTO FUNERAL HOME…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Apr 20, 2006

Citations

28 A.D.3d 349 (N.Y. App. Div. 2006)
2006 N.Y. Slip Op. 2982
813 N.Y.S.2d 422

Citing Cases

Wallach v. Smith (In re Nanodynamics, Inc.)

See Matter of Rappaport (2nd Dept. 1985) 487 NYS 2d 376 and In re Musano (1st Dep. 2006) 813 NYS 2d 422…

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In challenging the referee's determinations, defendant first contends that he was authorized to transfer two…