Every shareholder is entitled to inspect corporate records for a proper purpose.

Question

Quizplus · Accepted Answer

According to the principles of corporate law, every shareholder has the right to inspect the company's records and documents for a "proper purpose," which typically involves protecting one's financial interests or investigating alleged wrongdoing within the company. This right is recognized by most state laws and is an essential feature of shareholder democracy in the United States. However, shareholders must follow certain protocols to exercise this right, such as submitting a written request and providing a legitimate reason for the inspection. Additionally, companies may limit the scope of the inspection to protect confidential or proprietary information.

Every Shareholder Is Entitled to Inspect Corporate Records for a Proper