Moffatt v. Niemitz

Moffatt had a profitable insurance brokerage business, and to expand it enlisted the services and co-operation of Parsons and Niemitz. He formed a corporation (T.C. Moffatt Co.) and transferred the business for all the capital stock — fifteen shares of preferred and fifteen common. He gave to each of his associates five shares of the preferred stock and three of the common; one share of common to his wife and another to his lawyer. The five stockholders constituted the board of directors from the formation of the company in 1918 to the annual election in January, 1927. Moffatt was president,…