Under Delaware Law, Stockholders May Inspect RecordsPDF
Laurence Weiss' article, "Under Delaware Law, Stockholders May Inspect Records," was published in the National Law Journal on November 17, 2008.
From the article...
"Imagine the following scenario: A company has hit a rough patch — a below-expectations quarter, earnings restatement or power struggle among board members. Although no lawsuits have been filed, a stockholder sends a letter demanding, under Delaware Corporations Code § 220, access to broad categories of sensitive, nonpublic company accounting records, e-mail and other documents. The clear implication: This stockholder is fishing for evidence supporting a lawsuit. Must the company allow inspection? For businesses incorporated in Delaware, the answer is probably 'yes.'"
View Article (subscription required)