Asked by Jocelyn Espericueta on Jul 08, 2024
Verified
Determining the names of other shareholders in order to communicate with them about corporate affairs is a "proper purpose" for a shareholder to inspect the books and records of a corporation.
Proper Purpose
Acting with a legitimate objective, especially in the context of corporate governance where actions should align with the best interests of the company and its shareholders.
Shareholders
Individuals or entities that own shares in a corporation, making them part owners of the company with certain rights and responsibilities.
- Acquire knowledge on the procedures for holding shareholder meetings and the participation of shareholders in requesting these meetings.
Verified Answer
VC
Valentina CastroJul 15, 2024
Final Answer :
True
Explanation :
According to most state corporate laws, determining the names of other shareholders is considered a proper purpose for a shareholder to inspect the books and records of a corporation. This allows shareholders to communicate with each other about corporate affairs and potentially engage in collective action.
Learning Objectives
- Acquire knowledge on the procedures for holding shareholder meetings and the participation of shareholders in requesting these meetings.
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