Opinion ID: 1799426
Heading Depth: 2
Heading Rank: 1

Heading: Fenestra the Object of Control.

Text: Plaintiff Fenestra is a Michigan corporation engaged in the manufacture of automotive springs and also certain building products for which it is, perhaps, best known. Since 1957, the corporation has been listed on the New York Stock Exchange and, although publicly held, its 637,721 shares are distributed among only 1,200 stockholders. Fenestra has four divisions of which the automotive spring division is most successful. In fact, the other three divisions, referred to as the building products divisions, have lost substantial sums of money in the last several years. As a result, Fenestra has an income tax loss-carry-forward of $4,300,000 which can be used to offset profits in certain annual instalments up to and including the tax year of 1967, if Fenestra can generate profits in the operable years. Despite company losses, Fenestra had a strong financial position with current assets substantially greater than current liabilities. Current assets included approximately $7,700,000 in cash items and $9,500,000 of notes and accounts receivable, inventories, and prepaid items, as compared with current liabilities estimated at $2,800,000. The company also owed a balance on a long-term debt to Prudential Life Insurance Company of approximately $4,880,000. The majority or management directors include Orren Leslie, president, William P. Porch, vice-president and treasurer, D.S. Burnett, who is head of the automotive spring division, H.D. Palmer, a former president, V.W. Klein, a member of the law firm which represents the company, and M.E. Templeton. The combined stockholdings of the six management directors is 2,952 shares.