Gottlieb v. Heyden Chemical Corp.

Tunnell, Justice,

delivering the opinion of the court:

On the 14th day of March, 1951, the nine members of the board of directors of defendant corporation unanimously adopted what is referred to in Section 130A of the Internal Revenue Code, 26 U.S.C.A. § 130A, as a “restricted stock option plan”. The plan provided, (1), for granting to seven -specified officers of the company, six of whom were members of the board of directors, an option to purchase various designated amounts of the common stock of the corporation, totalling 24,500 shares, and (2), for setting aside the further quantity of…