CORPORATIONS-RIGHT OF HOSTILE STOCKHOLDER AND DIRECTOR TO EXAMINETHE BOOKS AND RECORDS OF CORPORATION

Authors

Charles R. Gibson S.Ed., University of Michigan Law School

Abstract

Plaintiff was a minority stockholder and director in Pascal Company. She sought to inspect the books and records of the corporation relating to marketing practices, sales and customers, but was prevented from doing so by the defendant, who is the president and majority stockholder of the corporation. Plaintiff thereupon brought an action for a writ of mandamus to compel the defendant to permit such inspection. The defense was that plaintiff had a scheme to interfere with, harass and sabotage the business by contacting distributors and customers, and by making information regarding the business available to competitors. The lower court dismissed the action with prejudice. On appeal, held, affirmed. Since the plaintiff's purposes were hostile to the corporation, she had no right either as a stockholder or director to examine the books and records. State ex rel. Paschall v. Scott, (Wash. 1952) 247 P. (2d) 543.

Recommended Citation

Charles R. Gibson S.Ed., CORPORATIONS-RIGHT OF HOSTILE STOCKHOLDER AND DIRECTOR TO EXAMINETHE BOOKS AND RECORDS OF CORPORATION, 51 Mich. L. Rev. 747 (1953).
Available at: https://repository.law.umich.edu/mlr/vol51/iss5/13