Agreement to pay fringe benefits. (i) S, a corporation, is required under binding agreements to pay accident and health insur- ance premiums on behalf of certain of its employees who are also shareholders. Dif- ferent premium amounts are paid by S for each employee-shareholder. The facts and circumstances do not reflect that a principal purpose of the agreements is to circumvent the one class of stock requirement of section 1361(b)(1)(D) and this paragraph (l). (ii) Under paragraph (l)(2)(i) of this section, the agreements are not governing provisions. Accordingly, S is not treated as having more than one class of stock by reason of the agreements. In addition, S is not treated as having more than one class of stock by rea- son of the payment of fringe benefits.
Appears in 9 contracts
Samples: Supplemental Contract, Publishing Agreement, Supplemental Contract
