December 10, 2019 Articles

Tips for Dealing with Inspection Demands

Inspection demands are the canary in the coal mine. They almost invariably foreshadow shareholder litigation. Be prepared with a strategy when they arrive.

By Mark R.S. Foster and Ryan Keats

Inspection demands made by shareholders are on the uptick. These demands play an early and significant role in shareholder litigation involving companies and their directors and officers. Shareholders make inspection demands to obtain key corporate documents before the commencement of litigation. Shareholders often seek these documents to support claims for breaches of fiduciary duty against corporate officers and directors. This article provides some practical guidance on dealing with inspection demands.

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