Question by Will: Shareholder rights in private corporations?
What rights do shareholders have in private corporations regarding access to financial information? Specifically in california.
Best answer:
Answer by montecristobynight
If you are a general share holder in a corporation that is private, you are considered an owner. You have the right to access financial records. Also, a properly run corporation will issue monthly “P & L” statements that should account for the basic financial doings of the corporation every month. If you suspect fraud in management and you are being restricted from physical access to needed documents, you could sue for the right to an independent audit of the books. Another option if you suspect fraud, and this only works if the corporation uses a bank to help finance business activities, is to alert them to your suspicions and they might demand an immediate audit.
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