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Delaware Shareholder Rights - You Can Inspect Corporate Finances

If you are a shareholder of a Delaware corporation you may have shareholder inspection rights to see the corporate financials. Shareholders include employees who have exercised employee stock options.

Any stockholder, in person or by attorney or other agent, shall, upon written demand under oath stating the purpose thereof, have the right during the usual hours for business to inspect for any proper purpose, and to make copies and extracts from:

 

(1) The corporation's stock ledger, a list of its stockholders, and its other books and records; and

 (2) A subsidiary's books and records,

Many corporations are incorporated in Delaware even if they are headquartered in California.

Not every company will comply with the law but it doesn't hurt to ask. Ask your attorney if there are penalties for noncompliance.

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Richard Pon CPA, CFP