As Owners, What Rights and Advantages Do Shareholders Obtain?
Have you stopped to ask yourself, "as owners, what rights and advantages do shareholders obtain?", This is the type of question you might have if you are the partial owner of any business via shares. You are entitled to many rights when you purchase your shares, and you can and should exercise those rights when necessary. DoNotPay has helped countless people wade through the mountains of paperwork that can go along with demanding your fair and equal rights as a shareholder in the state of Delaware.
Can You Submit a Delaware Code 220 Request From Any State?
The Delaware Code 220 applies to companies that are incorporated in the state of Delaware. You might think that this would only be a small handful of companies, given the small size of the state, but that is actually not the case. Many companies choose to incorporate in Delaware because of the very favorable tax treatment that companies receive there. Thus, it might be possible to file a Delaware Code 220 request from any state as long as the company you are requesting information from is incorporated in Delaware.
Reports and statistics frequently requested via a Delaware Code 220 request include:
- Revenue statements
- Profit/loss statements
- Forward-looking statements (i.e., projections made by the company about its own future)
- Assets and inventory reports
- Consumer complaint reports
There are many other official documents that one might go after as well. The reason to try to gather these forms is that they provide a lot of insight into the health and future of the company you are investing in. Would you fly blind into an investment if you knew that there was so much data just lying there for the taking? Probably not. That is why Delaware Code 220 was made into law in the first place, and it is something that you should exercise.
Submitting a Delaware Code 220 Request Yourself
The law is written in such a way that any shareholder of a company incorporated in Delaware is allowed to submit a Delaware Code 220 demand letter themselves. That said, the company that receives that letter might not give you precisely the response you had hoped for right from the start. Many people had stated that they did not receive the outcome they had hoped for when they originally submitted the demand letter because their demand letter was either ignored or rejected. This is why you need to know the procedure for how this works:
- Submit your formal Delaware Code 220 demand letter to the company you are demanding records from
- Wait for their response to that letter.
- If they do not respond, or if they reject your request, you must take action in the Delaware Chancery Court.
- Follow the steps that the court lays out to receive a resolution one way or the other from the court.
The courts are instructed to expedite the proceedings of Delaware Code 220 litigation, but the courts are still frequently backed up in the extreme, so you might find yourself waiting a very long time. This is why many people get too frustrated with the prospect of doing all of this heavy lifting on their own, and they often turn to DoNotPay to give them a helping hand.
Submitting a Code 220 Request With DoNotPay
How to submit a Delaware Code 220 request using DoNotPay:
If you want to submit a Delaware Code 220 request but don't know where to start, DoNotPay has you covered. Create your own cancellation letter in three easy steps:
- Search Delaware Code or Stock Inspection on DoNotPay.
- Confirm that the company you are hoping to inspect is a Delaware Corporation and that you are a stockholder.
- Tell us why you are requesting the information and what you plan on doing with it.
- Specify the names or types of documents you are requesting.
- That's it! DoNotPay will generate the formal request letter on your behalf and send it to the company.
As you can see, it just takes these five simple steps to follow through on your desire to get a Code 220 request filed with the company of your choice.There is no guarantee of success, but the law is written in such a way that many who follow the proper steps like this and go through the correct channels can get the help that they need to obtain the official financial documents that they require.
What Else Does DoNotPay Do?
Are there other things that you might benefit from when you use DoNotPay? Absolutely. They have a variety of services that appeal to shareholders in particular.
For example, they are known to provide the following services:
- Help to file a Freedom of Information Act request
- Help to find resources to file a class-action lawsuit on behalf of shareholders
- The ability to track down the right lawyer for you
You deserve to have as much insight as possible into the companies that you choose to invest in. You do not need to have a blindfold over your eyes in regards to how much money the company has or how its cash flow is looking.
These are all things that should be made plain and obvious. If that is the case, then you will have an easier time selecting the investments that are right for you.