Database Case: Chen Mouyun v. Sheyang Driver Training Company
Loss of accounting books or financial reports is not a statutory ground to refuse shareholder inspection. A company has a legal duty to preserve such materials and bears the adverse consequences when its own poor recordkeeping frustrates inspection rights.
Holding
Loss of accounting books or financial reports is not a statutory ground to refuse shareholder inspection. A company has a legal duty to preserve such materials and bears the adverse consequences when its own poor recordkeeping frustrates inspection rights.
Issues
loss of financial recordsduty of proper preservationinspection-right defense