Gazette Case: Shareholder Inspection

Gazette Case: Li Shujun, Wu Xiang, Sun Jie, and Wang Guoxing v. Jiangsu Jiade Real Estate Development Co., Ltd.

A shareholder-inspection action requires compliance with the statutory written-demand prerequisite; the company bears the burden of proving an improper purpose; and inspection of accounting books generally means access rather than an automatic right to copy.

Holding

A shareholder-inspection action requires compliance with the statutory written-demand prerequisite; the company bears the burden of proving an improper purpose; and inspection of accounting books generally means access rather than an automatic right to copy.

Issues

pre-suit demandimproper-purpose defensescope of accounting-book inspection