In Todd Swift v. Houston Wire & Cable Co., C.A. No. 2021-0525-LWW, memo. op. (Del. Ch. Dec. 3, 2021), the Court of Chancery found that a stockholder lacked standing
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books and records demand
Chancery Addresses Directors’ Rights to Inspect Books and Records of Delaware Corporation
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A director of a Delaware corporation is afforded broad rights under 8 Del. C. § 220(d) to inspect a corporation’s books and records. In the recent decision of Schnatter v. …
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Delaware Supreme Court Affirms Chancery’s Denial of Books and Records Demand – Credible Basis for Misconduct Not Established
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Often times, parties move to seek inspection of books and records under Section 220 in order to support a claim against management for corporate misconduct. However, the Court of Chancery…
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Termination of Receivership Standard Addressed by the Court
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In the recent decision of Jagodzinksi v. Silicon Valley Innovation Company, LLC, C.A. No. 7378-VCP (Del. Ch. Aug. 7, 2015), the Court of Chancery ruled on plaintiff’s motion to terminate…
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The Importance of a Books and Records Inspection Clause in an LLC Operating Agreement
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A member of a Delaware limited liability company (“LLC”) may find it desirable to make a demand to inspect the books and records of the company. For example, a member…
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Books and Records Action: Demand Cannot be Expanded Mid-Litigation
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A books and records demand made under Section 220 of the Delaware General Corporation Law (“DGCL”), must, among other things, state a “proper purpose”, and the categories of documents…
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Section 220: Court Orders Citigroup to Produce Records of its Subsidiary
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In the case of Oklahoma Firefighters Pension & Retirement System v. Citigroup, C.A. No. 9587-ML (Del. Ch. Sept. 30, 2014), Master LeGrow issued a Final Report granting inspection…
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Books and Records Demand: Inspection of Privileged Documents
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In a books and records demand under Section 220 of the Delaware General Corporation Law, the Court of Chancery has broad discretion to determine which categories of books and records…
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Section 220 Books and Records Demand: “Necessary and Essential” Standard Defined
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As discussed in a prior post, a stockholder seeking inspection of the books and records of a Delaware corporation must assert both a “proper purpose”, and the scope of…
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Books and Records Action Requires Strict Compliance with Statutory Requirements
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“Strict adherence to the Section 220 procedural requirements for making an inspection demand protects the rights of the corporation to receive and consider a demand in proper form before litigation …
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