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Dear Customer, the shareholders are entitled to financial documents of the company (they are the company's owners and are entitled to information regarding its financial well being). There are some exceptions, but these truly are exceptions to the rule. i can give you some more specific information if you can provide me with (1) whether your corporation is an S-Corp or a C-Corp, and if it is a C-Corp, whether it is public or private, and (2) what state your corporation is incorporated in.
For some immediate information, here is a link to a helpful article written by a Texas law firm that covers the basic rules and regulations for corporations and requirements for disclosure. While it is drafted with Texas law in mind, the principles are common to all states. http://shareholderoppression.com/right_to_know
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Good Morning, sorry for the delay...was working from my cell yesterday and for some unknown reason could not reply. The corp. was established in 1984 this is our sixth year since our S election. It is a private, "family" business in Florida. I'm having trouble getting the bylaws and records I've requested. I feel I should continue to request again... and again...etc. to log my efforts. FIRST, is this wise? Would it be helpful in proving the information is being witheld or could it hurt if I'm following the state's bylaws instead of the corporations in doing so?
Dear Customer, if your bylaws, or other governing documents, provide you with a mechanism to request and receive information you can follow that procedure. The state rules are a fall back in the event that there are no provisions in the governing documents. You should follow the procedures before making the demand as it will be a requirement before you can file any sort of action to pursue the documents in court. I cannot advise you on how many demands or informal requests would be advisable (first I cannot practice law on this site, and second I do not have enough information about the dynamics of your particular corporation to be able to give you a good strategy in any event).
I understand the frustration of trying to use the internet based chat function through a hand held device, please do not hesitate to follow up as necessary and I will make sure to get back to you as quickly as possible.
Thank you. I understand you cannot advise, forgive me if I frame my questions incorrectly. I know I need to follow our bylaws but I cannot yet get them to respond with them. My mail is being refused. This is why I'm trying to learn if I can request them along with the other records using the state's provision for requesting documents or if this is counter productive?
I doubt this is counter-productive, it is duplicative, but it would not hurt from a legal perspective.
Thank you :-)
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