Asked by Yesenia Gomez on Jul 09, 2024
Verified
Erin, a shareholder of Finance Inc., demands the right to inspect corporate records to determine whether management has engaged in self-dealing that impacts the company. The firm refuses the request. On Erin's challenge, a court is most likely to hold that her request constitutes
A) harassment.
B) unreasonable access to trade secrets and other confidential information.
C) a proper purpose.
D) potential abuse.
Self-Dealing
An unethical business practice where an individual takes advantage of their position in a transaction for personal benefit, often at the expense of the interests of others.
Corporate Records
Documents and ledgers that are required to be maintained by a corporation, detailing its operations, financial status, and legal obligations.
- Comprehend the legal structure that governs the rights of shareholders, encompassing their authority to vote and pursue lawsuits for the corporation.
Verified Answer
KA
Kafiya Ahmed Samatar 173-34-706Jul 15, 2024
Final Answer :
C
Explanation :
Erin's request to inspect corporate records to determine if management has engaged in self-dealing that impacts the company is considered a proper purpose. Shareholders have the right to inspect records when they have a legitimate concern about the management's actions affecting the company.
Learning Objectives
- Comprehend the legal structure that governs the rights of shareholders, encompassing their authority to vote and pursue lawsuits for the corporation.