Gathering Evidence for Stockholder Litigation: Delaware Books and Records Inspection Demands

Plaintiffs’ lawyers increasingly are obtaining pre-complaint discovery on Delaware corporations by making books and records inspection demands on behalf of stockholders. Section 220 of the Delaware General Corporation Law permits any stockholder to inspect corporate books and records, regardless of the number of shares owned in the corporation, provided that the stockholder possesses a “proper purpose” for inspection, defined under the statute as “a purpose reasonably related to [the stockholder]’s interest as a stockholder.”

This article originally appeared on InsideCounsel.