Attorney L. Reed Bloodworth, the managing partner of Bloodworth Law with offices in Orlando and Winter Haven, Florida.
Reed handles a range of business litigation including shareholder agreements and the resolution of shareholder disputes.
What Are Your Inspection Rights as a Shareholder?
Reed talks about the inspection rights of a company shareholder.
What inspection rights do you have, and how do you request a review information as a shareholder?
In Florida, shareholders have the right to inspect their company’s financial records and the books of their company. Before, or in conjunction with filing a lawsuit, a shareholder can demand inspection of:
- Bonus and salary payments to personnel
- A disclosure of lawsuits filed against the corporation
- Accounting records
- Corporation bylaws
- Corporation records and books
- Records of actions that were taken without a meeting
- Vendor payments
- Shareholders records
- Business addresses and names of the corporation’s directors and officers
- Minutes of meetings for:
○ The board of directors and any committees.
How Do You Exercise These Rights as a Shareholder?
Shareholder agreements and Florida statutes control how you request this information.
In order for a shareholder to make a demand on the corporation for inspection of the books and records, it should be in good faith and for a proper purpose — one that is intended to protect the shareholder’s interests, that is not contrary to the interest of the corporation and is lawful.
Who Can Help With a Dispute?
If a party has violated the terms of a shareholder agreement, and you have sustained financial losses because of this violation of terms, you should not pursue actions without experienced legal representation.
Resolving shareholder disputes can include negotiation, litigation, arbitration, or mediation. These often involve complex issues, and a shareholder should begin this process without an attorney who works in this area.
Attorney L. Reed Bloodworth is the managing partner of Bloodworth Law. If you have a legal dispute involving your rights as a shareholder, give Reed a call to talk about how Bloodworth Law can help you, your family, or your business.