{"id":7821,"date":"2022-01-06T06:43:14","date_gmt":"2022-01-06T06:43:14","guid":{"rendered":"https:\/\/juradolawfirm.com\/?p=7821"},"modified":"2022-01-21T08:00:57","modified_gmt":"2022-01-21T08:00:57","slug":"shareholder-inspection-rights","status":"publish","type":"post","link":"https:\/\/juradolawfirm.com\/shareholder-inspection-rights\/","title":{"rendered":"Shareholder Inspection Rights \u2013 What Do I Need to Know?"},"content":{"rendered":"\n

In this article, you will learn what you need to know about shareholder inspection rights directly from an experienced Florida Business Lawyer<\/a>. If you are a shareholder who wants to have a better understanding of shareholder inspection rights, then this article is for you.<\/p>\n\n\n\n

Shareholder Inspection Rights \u2013 What You Need to Know<\/strong><\/h2>\n\n\n\n

Sometimes, corporations mismanage funds and corporate directors act in their own self-interest. Other times corporations try to out shareholders. This is illegal. In Florida, shareholders must always be allowed to inspect and make copies of corporate documents to use in any potential lawsuits<\/a> or to simply monitor the corporation to determine whether there is any mismanagement.<\/p>\n\n\n\n

Shareholder inspection rights exist so that shareholders may \u201cascertain whether the affairs of a corporation are properly conducted and that they may vote intelligently on questions of corporate policy and management.\u201d \u201cThe predisposition of the law is in favor of allowing reasonable inspections of corporate books and records.\u201d<\/p>\n\n\n\n

However, the \u201cright to inspect the books and records of a corporation, is not an absolute right, regardless of the stockholders\u2019 motive.\u201d  Courts will not always force the inspection of books. \u201cIn issuing the writ of mandamus, the court will exercise a sound discretion and grant the right under proper safeguards to protect the interests of all concerned. The writ should not be granted for speculative purposes, or to gratify idle curiosity, or to aid a blackmailer, but it may not be denied to the stockholder who seeks the information for legitimate purposes.\u201d  However, the \u201cright of a stockholder as conferred by statute to examine the corporate records, although not absolute, is a valuable right.\u201d<\/p>\n\n\n\n

While Florida shareholders are entitled to inspect and make copies of certain corporate documents, there are procedures and limitations to which they must adhere. Under Florida Statute 607.1602, a shareholder is allowed to inspect and make copies of corporate records at the corporation\u2019s principal office during regular business hours as long as the shareholder gives the corporation written notice at least five business days before the date the shareholder intends to inspect the documents.<\/p>\n\n\n\n

In addition, the shareholder\u2019s demand must be made for a proper purpose and in good faith when inspecting and making copies of:<\/p>\n\n\n\n