In re the Arbitration between Glekel & Gluck

J. Petitioner-appellant G-lekel appeals from a judgment of the Supreme Court, New York County, denying his application to stay an arbitration sought to be initiated by respondent Gluck.

For the reasons hereinafter stated, we hold the agreement relied on to be void, against public policy and in violation of section 701 of the Business Corporation Law and accordingly we reverse, on the law, with costs and with disbursements, and grant the motion to stay the arbitration.

On May 17, 1968, respondent was a director and chairman of the board of A. S. Beck Shoe Corporation (hereinafter “Beck”), a…