Qingdao Model Case: Jiao v. Jinzhu shareholder inspection

Reference Case: Jiao Mou v. Jinzhu Company and Ding Mou

Where a shareholder has made the required written demand, the court should order access to the charter, meeting records, financial reports, accounting books, and accounting vouchers unless the company can show a legitimate ground for refusal. Mere abstract suspicion of an improper purpose is insufficient to defeat inspection rights.

Holding

Where a shareholder has made the required written demand, the court should order access to the charter, meeting records, financial reports, accounting books, and accounting vouchers unless the company can show a legitimate ground for refusal. Mere abstract suspicion of an improper purpose is insufficient to defeat inspection rights.

Issues

written pre-suit demandinspection of accounting vouchersburden on improper purpose