What Does Delaware Law Say About Shareholders' Rights to Financial Information
The state government in Delaware has passed a law that establishes shareholders' right to financial information. This means that if you are a resident of the state of Delaware and you own shares in a public company, you have rights to certain pieces of financial information from that company. In fact, this applies to some private companies as well, and you can get the information you are entitled to so that you may make the most informed decisions possible regarding how your investment is doing, and if you should perhaps invest more. In order to obtain those records you will need to fill out some official paperwork, and you may want to lean on DoNotPay to help make that happen.
Can You Submit A Delaware Shareholders Information Request From Any State?
Submitting a Delaware financial information request from any state may be possible if you are a resident of Delaware yourself. The state that you submit the request from is not as important as your residency in the state of Delaware yourself. If you are a resident, then you can file this request even if you have moved out of state. However, those who are not Delaware residents will not be able to benefit from this law at this time.
One hurdle that you may find yourself stuck trying to get over is that some private companies will dig in their heels about providing financial information at all, particularly to those out of state. National Law Review provided a summary of why this may be the case:
Directors and officers of privately held companies sometimes complain about the cost of generating and third-party review of company financial statements. The Delaware Chancery Court recently announced that privately held corporations have no actual affirmative duty to stockholders to provide them with company financial reporting materials in the absence of a request for stockholder action.
These private companies complain about the cost of generating such reports, and they will try to drag out such actions as much as possible in many cases. However, when shareholders stick together, they can demand action on this regardless of what those private companies want. Shareholders are entitled to some of the following as an example:
|Information:||Why It Matters:|
|Latest Earnings||The latest quarterly earnings can be useful for determining the direction that the company is likely to take. You cannot fully base your projections on the future of a company based on its past, but past earnings may help:
|Insider Share Holdings||Information about how many shares insiders in the company are holding is helpful at gauging the confidence that people inside the company have about the ability of the company to be successful going forward.|
|Board Meeting Minutes||Shareholders can receive information about topics discussed and opinions offered during board meetings for that company.|
Can You Submit A Request Yourself?
It is possible to submit a request for financial records yourself by using the Delaware Code 220 request form yourself, but you may run into some issues including:
- Difficulty understanding precisely what forms you need to submit
- Challenges understanding the formal language on the forms and what it all means
- Resistance from the parties that you are submitting these forms to
While it is technically possible to submit your own financial information release forms, you are probably going to have a very hard road ahead of you doing so. Many companies will make it as challenging as possible to get these forms completed, and you may find yourself more frustrated than anything else that you are not getting the results that you want. That is why you ought to go with DoNotPay as an assistant.
How to Submit a Delaware Code 220 Request Using DoNotPay:
- 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.
What Else Can DoNotPay Help You With?
There are a lot of things that you can use DoNotPay for as you scour its resources. You may not realize this, but DoNotPay is always adding new services for people to use because they know that a happy customer is one who will return and bring along some others with them as well. They have a lot of subject areas that they cover, but if you are looking for financial information, you may be pleased to know that they can also help with:
- Finding the best credit cards for your situation
- Helping you find a lawyer when you need one
- Filing a shareholder complaint
- Freedom Of Information Act paperwork
You never know what kind of assistance you may need in the future, and it is great to have a single resource that you can rely on for a variety of complicated tasks that you need to handle. DoNotPay is in the business of making life a bit easier for you, and they are very good at what they do. If you feel that there is too much on your plate right now, you will want to check them out as soon as possible.