IN RE: FANCY WINDOWS & DOORS MFG. CORP. (1997)

In a proceeding pursuant to Business Corporation Law § 1104-a for judicial dissolution of a closely-held corporation, the appeal is from an order of the Supreme Court, Kings County (Kramer, J.), dated June 28, 1996, which, without a hearing, inter alia, ordered dissolution.

ORDERED that the order is reversed, on the law, with costs, and the matter is remitted to the Supreme Court, Kings County, for a hearing and a new determination in accordance herewith.

“Section 1104-a of the Business Corporation Law, enacted in 1979, provides minority shareholders in close corporations with protection from oppressive conduct by majority interests” (Matter of Seagroatt Floral Co. [Riccardi], 78 N.Y.2d 439, 444, 576 N.Y.S.2d 831, 583 N.E.2d 287).   The appropriateness of an order of dissolution pursuant to Business Corporation Law § 1104-a “is in every case vested in the sound discretion of the court considering the application” (Matter of Kemp & Beatley [Gardstein], 64 N.Y.2d 63, 73, 484 N.Y.S.2d 799, 473 N.E.2d 1173).   In the present case, in view of the parties' conflicting assertions, the Supreme Court should have held an evidentiary hearing (see, Matter of Kemp & Beatley [Gardstein], supra, at 73-75, 484 N.Y.S.2d 799, 473 N.E.2d 1173;  Matter of Rosen [Hofteller Enters.], 102 A.D.2d 855, 476 N.Y.S.2d 625;  Matter of Kournianos [H.M.G., Inc.], 175 A.D.2d 129, 571 N.Y.S.2d 823;  see also, LaBarbera v. D'Amico, 240 A.D.2d 640, 659 N.Y.S.2d 96;  Matter of Singer v. Evergreen Decorators, 205 A.D.2d 694, 613 N.Y.S.2d 667).

MEMORANDUM BY THE COURT.