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“Credible Basis” To Investigate Mismanagement: Developments In § 220 Books-And-Records Inspections  


Author:  Michael J. McConnell.; Marjorie P. Duffy.


Source: Volume 36, Number 10, October 2020 , pp.125-128(4)




Review of Banking & Financial Services

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Abstract: 

Under a Delaware statute, stockholders of Delaware corporations seeking to investigate corporate books and records must show a “proper purpose,” usually involving a credible basis from which corporate wrongdoing may be inferred. In this article, the authors first discuss the general requirements of the statute, and then turn to a detailed discussion of recent applications by the Delaware courts of the credible-basis standard.

Keywords: Kosinski v. GGP Inc.; Donnelly v. Keryx Biopharmaceuticals, Inc.; Paraflon Investments, Ltd. v. Linkable Networks, Inc.; Elow v. Express Scripts Holding Company; Hoeller v. Tempur Sealy International, Inc.

Affiliations:  1: Jones Day; 2: Jones Day.

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