Practice Quiz

CLEP Business Law

Category - Miscellaneous

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Which of the following is a proper purpose for a shareholder to inspect corporate records?
  1. To communicate with other shareholders concerning a tender offer.
  2. To get the shareholder list to use in a personal marketing effort.
  3. To find out personal details of other shareholders.
  4. To communicate with other shareholders concerning unrelated investment opportunities.
  5. To learn the trade secrets of the corporation.
Explanation
Answer: A. A proper purpose for a shareholder to inspect corporate records is to communicate with other shareholders concerning a tender offer. In general, shareholders are permitted to examine corporate records. However, a shareholder needs a purpose reasonably related to his or her investment.
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