Does a San Diego shareholder have the right to inspect the books? Generally speaking, a shareholder or holder of a “voting rights certificate” has the right to inspect the books or financial records of the corporation for reasonable purposes during normal business purposes. This right also usually extends to any subsidiaries owned by the corporation. California’s Corporations Code specifies that this right may not be limited by the articles or bylaws. However, while shareholders may have access to financial and corporate information that is unavailable to the general public, they do not have the right to access most of a corporation’s trade secrets or confidential communications.
There are many reasons why shareholder disputes arise, and there can be sound reasons for wishing to review the corporation’s financial records, and make copies of or notes about specific information. When does a San Diego shareholder have the right to inspect the books and how do you gain access?
If you are concerned about exercising your rights as a shareholder, have questions about how money is handled in the corporation, or have been denied access to inspect the books or corporate meeting notes of your company we invite you to contact the Watkins Firm or call to speak with one of our experienced shareholders rights attorneys at 858-535-1511 for a complimentary and substantive consultation.
You may be denied access to the books by well intentioned managers if you are simply curious, or if there is seemingly no business reason for the request. It is not unusual for such a request to trigger a bit of a defensive response from many corporate officers. However, a minority shareholder has the right to manage and protect their investment. California laws which address shareholder rights and the access to financial records are quite complex. Attorneys at the Watkins Firm have decades of experience and expertise in these matters, and we can work with you to ensure proper notice, and to assert and protect your rights as a shareholder.