Opinion ID: 2321828
Heading Depth: 1
Heading Rank: 3

Heading: The 2004 Transfers

Text: On October 26, 2004, Arie and Dalia Genger divorced. In the Gengers' divorce settlement agreement, Arie Genger represented that [e]xcept for the Consent of TPR . . . no consent, approval or similar action of any person is required in connection with the transfer of [Trans-Resources] Stock as contemplated hereby. . . . That representation was false. In fact, the prior consent of the Trump Group signatories to the Stockholders Agreement ( i.e., Glenclova and Investors) was required. Three days later, on October 29, 2004, Genger transferred his controlling stock interest in TPR to Dalia. Simultaneously, he caused TPR to transfer its 52.85% ownership in Trans-Resources as follows: (i) to himself, approximately 13.9% of those shares; and (ii) to each of the Orly Trust and the Sagi Trust, approximately 19.5% of those shares. Those transfers are collectively referred to in this Opinion as the 2004 Transfers. Under the agreement that documented the 2004 Transfers, the trustees of both Trusts purported to give irrevocable lifetime proxies to Genger to vote the Trans-Resources shares held by each Trust (the Irrevocable Proxies or Proxies).