What Are Your Inspection Rights as a Shareholder?
What inspection rights do you have, and how do you request a review of information as a shareholder? What are your inspection rights as a shareholder?
In Florida, shareholders have the right to inspect a company’s financial records and books. 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 those of the corporation, and that is lawful.
What Steps Do You Take If There’s A Dispute?
Resolving shareholder disputes and exerting or clarifying shareholder rights can involve complex issues. 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 legal representation by an experienced firm or attorney.
Florida attorney L. Reed Bloodworth is Founder and CEO of Bloodworth Law with offices in Orlando and Winter Haven, Florida. Reed and the Bloodworth Law Business Litigation Team represent clients in business disputes including shareholder agreements and shareholder rights. Talk to Reed and find out how Bloodworth Law can help you, your family, or your business.Consider sharing this post