The Delaware Court of Chancery, in Avery L. Woods v. Sahara Enterprises, Inc., C.A. No. 2020-0153-JTL, memo. op. (Del. Ch. July 22, 2020) — an action seeking inspection of corporate books and records action — rejects defendant holding company’s argument that it cannot produce records because it is managed by a sister entity, finding the position supports plaintiff’s purpose of inspection to investigate possible wrongdoing because it allows a reasonable inference that defendant’s board abdicated its duties to another entity.
NEW: K&L Gates discusses the decision in Delaware Court of Chancery Finds Valuation of Stock Alone is Sufficient to Support Books and Records Request.
Appraisal Rights Litigation Blog discusses the decision in Books and Records (Del.): Valuing Private Shares is a Proper Purpose.
Morris James discusses the decision in Chancery Addresses Burdens for Valuation-Related Books-and-Records Inspections, While Finding Defendant’s Asserted Lack of Records Supported Mismanagement-Related Inspection.
Francis Pileggi discusses the decision in Chancery Clarifies Nuances of Section 220 Stockholder Demand for Inspection Rights.
Frank Reynolds discusses the decision in Chancery Court says inspection cannot be thwarted by claiming records are out of reach at sister firm.