Delaware Supreme Court Provides Important Guidance Regarding Section 220 Demands, Rejecting Several Limiting Principles Frequently Offered By Corporations Resisting Stockholder Inspection Demands
By EsqSocial Corporation 29/12/20
Section 220 of the Delaware General Corporation Law, 8 Del. C. § 220 (“Section 220”), permits a stockholder of a Delaware corporation to inspect corporate books and records upon a showing of a proper purpose. The Delaware courts have long urged stockholders to avail themselves of Section 220 — the “tools at hand” — to inspect relevant corporate documents before commencing plenary derivative litigation. See, e.g., Grimes v. Donald, 673 A.2d 1207, 1216 & n.11 (Del. 1996). Perhaps as a result of...
By: Sheppard Mullin Richter & Hampton LLP