Delaware Law: Shareholder's Right to Examine Books and Records

Delaware Code 220 Request Delaware Law: Shareholder's Right to Examine Books and Records

Delaware Law: Shareholder's Right to Examine Books and Records

Under section 220 of Delaware corporate law, shareholders have the right to examine the books and records of a corporation for a "proper purpose." But it can be challenging to determine exactly what advantages that gives a shareholder.

It is clear that under code 220, a shareholder has certain information rights, but it may be unclear how to request them. It also may be unclear what type of information shareholders can request.

DoNotPay can answer your questions. For example, they can show you how to file a section 220 request in Delaware, what books and records are open to you with a section 220 demand, and even provide you with a sample letter of a section 220 demand.

This guide will examine Delaware Code 220 in detail, explain how to make a section 220 request, and why using DoNotPay to make that request for you makes it faster and less frustrating.

Can You Submit a Delaware Code 220 Request from Any State?

As long as the request is made by a shareholder to a corporation with a registered office in Delaware and is for "proper purpose," the request can come from any state.

How to Examine the Books and Records of a Delaware Corporation Under Code 220 by Yourself

The process for using your right to examine the books and records of a Delaware corporation under code 220 can be confusing to do on your own.

ShareholderShareholder in a corporation with a registered office in Delaware.
Proper Purpose
  1. Mismanagement
  2. Waste
  3. Improper Transactions
  4. Self Dealing
Proof Of NecessityThe person requesting the documents must prove that documents are necessary for the stated reasons.
Corporation AgreesA person requesting will be given access to the books and documents requested.
The Corporation Does Not AgreeShareholders must initiate action in Delaware Chancery Court to force the corporation to hand over wanted materials.

All of this can be difficult to do on your own. Unless you hire counsel, which can be expensive, it can be challenging to know what records to ask for.

Even if you know what records you are looking for, you need to prove "proper purpose”. The corporation can force you to go to court to prove that. And even if you can do that, the corporation can slow down the process by forcing you to confirm that each document you request is necessary to your request.

All of this can be expensive, time-consuming, and frustrating. There has to be a better way.

How to Examine the Books and Records of a Delaware Corporation under Code 220 with the Help Of DoNotPay

DoNotPay makes it easy to make a request under code 220 and defend your request in court if necessary.

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 3 easy steps:

  1. Search Delaware Code or Stock Inspection on DoNotPay. 
  2. Confirm that the company you are hoping to inspect is a Delaware Corporation and that you are a stockholder. 
  3. Tell us why you are requesting the information and what you plan on doing with it. 
  4. Specify the names or types of documents you are requesting. 
  5. That's it! DoNotPay will generate the formal request letter on your behalf and send it to the company. 

Why Use Donotpay to Examine the Books and Records of a Delaware Corporation under Code 220

You may want to examine the books and records of a Delaware Corporation under code 220 but aren't sure how to get the attention you deserve. Luckily, DoNotPay has a quick and easy solution.

  1. Fast: You don't have to spend hours defending your request in court. Just give some details to DoNotPay, and we do the rest.
  2. Easy: We deal with any questions concerning your request, so you don't have to.
  3. Successful: We've helped thousands of people request records under code 220, and we can help you.

DoNotPay Works across All Companies/Entities/Groups with the Click of a Button

DoNotPay can help you with a variety of issues such as:

  • DoNotPay can help submit a Delaware Code 220 request the same way it can with other information requests.
  • Or it can help you find different types of information requests shareholders can make.

What Else Can DoNotPay Do?

Don't struggle to request information under the Delaware Code 220 on your own. Use DoNotPay, today!

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