In the Matter of Franchard Corporation
Securities and Exchange Commission
42 S.E.C. 163 (1964)
Relevant factsFree
Real estate developer Louis Glickman, after his Venada Corporation ran into financial trouble, formed and took majority control of Franchard Corporation, seating himself on its board. Funds were then funneled from Franchard share sales to Venada without the knowledge of Franchard's shareholders or (with one exception) its board, even though Glickman sat on and controlled both companies. The SEC opened proceedings to determine whether Franchard had adequately disclosed Glickman's dual involvement in Franchard and Venada.
IssueFree
Whether a corporation must disclose situations in which a conflict of interest may arise for members of its board of directors.
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