Defining The Metes And Bounds Of A Director’s Absolute Right To Inspect

A year ago, I wrote this post discussing the Court of Appeal’s decision in Wolf v. CDS Devco, 185 Cal.App.4th 903 (2010). In that case, a director was removed shortly after filing an inspection demand pursuant to Corporations Code Section 1602. Before removal, the director inadvertently sent the corporation a copy of his complaint to enforce his inspection rights. The Fourth District Court of Appeal concluded that the director lost standing to demand inspection upon his removal.

In Wolf, the court observed that a director could be denied the right to inspect corporate documents based on the director’s “potential adversary status to [the corporation],” as illustrated by the inspection request.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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