Form with which a shareholder may demand the opportunity to inspect the records of a corporation in which the shareholder holds stock.
Ohio Demand Inspection of Books — Corporate Resolutions refers to a legal process whereby a shareholder of an Ohio corporation requests an examination or inspection of the corporation's books and records. This is primarily done to ensure transparency and protect shareholders' interests in the company's affairs. In Ohio, shareholders have the right to demand inspection of the corporation's books and records by following the process outlined in Ohio Revised Code section 1701.24. This section grants shareholders the authority to obtain access to various corporate documents, such as financial statements, board meeting minutes, shareholder resolutions, stock records, and other relevant records of the corporation. The demand for inspection is typically made by sending a written request to the corporation's registered office or its principal place of business. The written demand should specify the purpose for which the inspection is sought and that the request is being made in good faith. It is crucial to mention that the demand must not be made for an improper purpose, such as to harass the corporation or its officers or directors. Once a demand for inspection is received, the corporation has five business days to respond. If the corporation refuses to allow inspection, the shareholder can file an action in the Ohio Court of Common Pleas to compel the inspection. The court will then consider the merits of the case and may order the corporation to comply with the inspection demand if it finds the request valid and made in good faith. Different types of Ohio Demand Inspection of Books — Corporate Resolutions may include: 1. Financial Records Inspection: Shareholders may demand access to financial statements, audited reports, tax records, and other financial documents to assess the corporation's financial health and performance. 2. Board Meeting Minutes: Shareholders can request inspection of board meeting minutes to gain insights into the decision-making process of the board of directors and understand the rationale behind important corporate resolutions. 3. Shareholder Resolutions Inspection: This type of inspection allows shareholders to examine resolutions passed by the shareholders themselves in order to understand the actions taken and their implications on the corporation. 4. Stock Records Inspection: Shareholders can request access to stock records to verify the ownership of shares, examine transfers, and assess any potential dilution or issuance of new shares. 5. Corporate Governance Documents: Shareholders may seek inspection of corporate bylaws, articles of incorporation, corporate policies, and procedures to ensure compliance and proper corporate governance. It is important to note that the specific types of inspection demanded may vary depending on the shareholder's objectives and concerns. Ohio's demand inspection laws aim to strike a balance between shareholders' rights to information and the legitimate interests of the corporation.
