Zimmermann v. Brennan

In 1961, Advertising Art Studios, Inc., established an employees’ profit-sharing plan which met the approval of the Internal Revenue Service for tax purposes. Redell, the vice-president and chairman of the board of the Studios, was an owner of one half of the common stock; Jahnke, the president and art director, owned the other one half of the outstanding common stock. Brennan was the attorney for the company and for Redell and Jahnke. Redell, Jahnke, and Brennan were appointed trustees of the plan. Under art. XII, sec. 2, of the plan, it was provided that upon a termination of employment…