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Letter Re Demand for Inspection of Books and Records Form

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Letter Re Demand for Inspection of Books and Records Form

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shareholders are part owners of Corporations and as such are entitled to certain rights and privileges for example a shareholder is entitled to inspect the corporation's books and Records but is that right unlimited or does it only apply to certain records that was the question facing the Delaware Court of Chancery in melzer versus CNET Networks Martin melzer and other shareholders of CNET networks filed a derivative suit against CNET in Federal District Court the shareholders allege that cnet's directors breached their fiduciary duties by either back dating stock options or receiving backdated options CNET move to dismiss on the grounds that the shareholders failed to adequately plead demand futility as was required to maintain a derivative action The District Court granted cnet's motion however the court also granted the shareholders leave to amend their complaint to re-pleads demand futility and issued a stay pending a demand to inspect cnet's books a

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