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Matter of Schwen

Appellate Division of the Supreme Court of New York, Second Department
Oct 23, 1989
154 A.D.2d 601 (N.Y. App. Div. 1989)

Opinion

October 23, 1989

Appeal from the Supreme Court, Suffolk County (Gerard, J.).


Ordered that the order is affirmed, with costs.

The petitioner seeks to have the respondent corporation dissolved on the basis of allegations that the corporation's major shareholder has engaged in oppressive conduct, including the misappropriation of over $50,000 in corporate assets. In opposition to the petitioner's motion for summary judgment, the majority shareholder averred that the corporate assets referred to by the petitioner were expended for valid business reasons, and were not converted to her own personal use. While these latter assertions are largely unsupported by documentary proof, it is inferrable that any inability to produce such documentary corroboration is attributable to careless record keeping, rather than to any intent to defraud. We therefore agree with the Supreme Court that the affidavits submitted in opposition to the petitioner's motion for summary judgment demonstrate the existence of issues of fact as to whether judicial dissolution of the corporation is warranted pursuant to Business Corporation Law § 1104-a (cf., Sorin v Shahmoon Indus., 30 Misc.2d 408). Mangano, J.P., Bracken, Kunzeman and Harwood, JJ., concur.


Summaries of

Matter of Schwen

Appellate Division of the Supreme Court of New York, Second Department
Oct 23, 1989
154 A.D.2d 601 (N.Y. App. Div. 1989)
Case details for

Matter of Schwen

Case Details

Full title:In the Matter of MARCIA G. SCHWEN, Appellant. VILLAGE TIMES, INC.…

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

Date published: Oct 23, 1989

Citations

154 A.D.2d 601 (N.Y. App. Div. 1989)
546 N.Y.S.2d 429

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