Do you have the right to inspect the books as a shareholder in San Diego or California?  Generally speaking, a shareholder or holder of a “voting rights certificate” usually 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 shareholders 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.

Why Do shareholder Disputes Usually Develop?

There are many reasons why shareholder disputes usually develop, 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 you have the right to inspect the books as a shareholder and how do you gain access?

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.

We Can Answer the Question of “Do You have the Right to Inspect the Books as a Shareholder?”

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 the Watkins Firm can and will help.  Draw on our more than 40 years of proven experience protecting the rights of shareholders and accomplishing their goals and objectives in any shareholder dispute.

we invite you to review our recent podcast episode 14 – Shareholders’ Rights and Disputes as well as the strong recommendations of former clients and 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.