Form with which a shareholder may demand the opportunity to inspect the records of a corporation in which the shareholder holds stock.
West Virginia Demand Inspection of Books — Corporate Resolutions refers to the legal mechanism provided under the West Virginia Code that allows shareholders or members of a corporation to demand access to and inspect the corporation's books and records. These books and records typically include financial statements, corporate minutes, shareholder and member information, and other important documents related to the operation of the corporation. The purpose of the Demand Inspection of Books is to ensure transparency and accountability in corporate governance by providing shareholders or members with the ability to review and obtain relevant information about the corporation's affairs. There are different types of West Virginia Demand Inspection of Books — Corporate Resolutions, which are categorized based on the different scenarios in which the demand can be made: 1. General Demand: This type of demand can be made by any shareholder or member of the corporation at any time. It allows them to inspect and copy the corporation's books and records for a proper purpose. A proper purpose typically involves concerns about mismanagement, potential fraudulent activities, or other issues that may impact the interests of shareholders or members. 2. Derivative Demand: A derivative demand is made by a shareholder or member on behalf of the corporation. It is typically used when the corporate management refuses to act upon serious concerns raised by the shareholder or member, such as alleged breaches of fiduciary duty or other wrongdoing by directors or officers. In such cases, the shareholder or member may seek access to the corporation's books and records to gather evidence to support their claim and initiate legal action on behalf of the corporation. It is important to note that the right to demand inspection is not absolute and has certain limitations. Some key factors to consider include: a) Adequate Purpose: The demand must be made for a proper purpose. The courts will review the nature and purpose of the demand to ensure it is not being sought for personal gain or harassment. b) Reasonable Scope: The scope of the requested inspection must be reasonable and relevant to the proper purpose. It should not unduly burden the corporation or expose sensitive information that is not related to the purpose. c) Proper Notice: The shareholder or member must provide a written demand to the corporation, stating the purpose of the demand and the specific books and records they seek to inspect. The demand should also specify the time and place for inspection, which must be reasonable. d) Court Intervention: If the corporation refuses or fails to comply with a valid demand, the shareholder or member can file a lawsuit in a West Virginia court seeking a court order to enforce their rights. The court will then review the demand, the corporation's response, and determine the appropriate course of action. In summary, West Virginia Demand Inspection of Books — Corporate Resolutions allows shareholders or members to request access to and inspect a corporation's books and records for a proper purpose. Different types of demands can be made, including general demands and derivative demands, based on the specific circumstances. It is essential to follow the proper procedures and comply with any limitations imposed by the law to exercise this right effectively.
