97 A.D.2d 874 | N.Y. App. Div. | 1983
Appeal from an order of the Supreme Court at Special Term (Tait, Jr., J.), entered March 3, 1983 in Broome County, which granted petitioners’ application, in a proceeding pursuant to section 624 of the Business Corporation Law, to inspect the corporate records and books of Farega Realty Corporation. The facts of this case are not disputed. Respondent is a New York corporation whose principal asset is an apartment complex. Respondent was formed in 1967 by petitioners Fred J. Szelega and Mary Szelega and one Ed Farrell for the purpose of building the aforesaid apartment complex. In 1969, because of some difficulty respondent was experiencing in meeting its payments, Dolores O’Hara, the present president of respondent, contributed $20,000 to the corporation, by virtue of which she became a one-third owner of the corporation. At this time, there were 18 shares of stock; six shares to petitioners, six shares to Ed Farrell, and six shares to Dolores O’Hara. Sometime between 1970 and 1972, Ed Farrell transferred his interest in respondent to Dolores O’Hara. On July 10, 1968, petitioners borrowed $8,000 from O’Hara and at the same time pledged their six shares in respondent as collateral security. Petitioners only made payments under the promissory note until July 2,1975, and to this date have made no further payments.