From Casetext: Smarter Legal Research

Plotsky v. Plotsky Egg Co., Inc.

Supreme Court, Appellate Term, First Department
Jul 3, 1934
152 Misc. 297 (N.Y. App. Term 1934)

Summary

In Plotsky v. Plotsky Egg Co., Inc., 1934, 152 Misc. 297, 273 N YS. 214, it was held that directors who were sole stockholders and officers of the corporation could vote themselves salaries as employees in the absence of fraud or bad faith, and that the corporation was estopped in denying the validity of such action.

Summary of this case from Sarasota Tile & Terrazzo Corp. v. De Soto Terrazzo Corp.

Opinion

July 3, 1934.

Appeal from the Municipal Court of New York, Borough of Manhattan, First District.

Anton Gronich, for the appellants.

Sidney Kabalkin, for the respondent.


The corporation is estopped, in the absence of fraud or bad faith, to deny the validity of the action of its directors who are also sole stockholders and officers of said corporation, in voting salaries to themselves in their capacity as employees. ( Shaw v. Ansaldi Co., Inc., 178 A.D. 589; Chamberlain v. Chamberlain, etc., Inc., 124 Misc. 480; affd., 216 A.D. 787. )

Judgments reversed, with thirty dollars costs as of one appeal, and judgments directed for plaintiffs as claimed in the summonses.

All concur; present, CALLAHAN, FRANKENTHALER and SHIENTAG, JJ.


Summaries of

Plotsky v. Plotsky Egg Co., Inc.

Supreme Court, Appellate Term, First Department
Jul 3, 1934
152 Misc. 297 (N.Y. App. Term 1934)

In Plotsky v. Plotsky Egg Co., Inc., 1934, 152 Misc. 297, 273 N YS. 214, it was held that directors who were sole stockholders and officers of the corporation could vote themselves salaries as employees in the absence of fraud or bad faith, and that the corporation was estopped in denying the validity of such action.

Summary of this case from Sarasota Tile & Terrazzo Corp. v. De Soto Terrazzo Corp.
Case details for

Plotsky v. Plotsky Egg Co., Inc.

Case Details

Full title:WILLIAM PLOTSKY, Appellant, v. PLOTSKY EGG CO., INC., Respondent. JACOB…

Court:Supreme Court, Appellate Term, First Department

Date published: Jul 3, 1934

Citations

152 Misc. 297 (N.Y. App. Term 1934)
273 N.Y.S. 214

Citing Cases

Sarasota Tile & Terrazzo Corp. v. De Soto Terrazzo Corp.

" In Plotsky v. Plotsky Egg Co., Inc., 1934, 152 Misc. 297, 273 N YS. 214, it was held that directors who…