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In the Matter of FANCY WINDOWS DOORS MFG. CORP., Appellant. FEI WU, Respondent.

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 Bus. Corp. 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). 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). In the present case, in view of the parties' conflicting assertions, the Supreme Court should have held an evidentiary hearing ( see, Matter of Kemp Beatly [Gardstein], supra, at 73-75; Matter of Rosen [Hofteller Enters.], 102 A.D.2d 855; Matter of Kournianos [H.M.G., Inc.], 175 A.D.2d 129; see also, LaBarbera v D'Amico, 240 A.D.2d 640; Matter of Singer v. Evergreen Decorators, 205 A.D.2d 694).

Ritter, J. P., Copertino, Florio and Luciano, JJ., concur.

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MATTER OF FANCY WINDOWS DOORS MFG. CORP
(Nov 17, 1997)