As a startup resource, The Flash strives to keep founders abreast of new rules and regulations that could have an impact on privacy and business processes. With this in mind, we want to make sure founders are aware of a Delaware law that stockholders are using with increasing frequency to inspect the books and records of the Delaware corporations in which they hold stock.
Section 220 of the Delaware General Corporation Law provides stockholders with the right “to inspect for any proper purpose . . . [t]he corporation’s stock ledger, a list of its stockholders, and its other books and records.” Founders should be aware that stockholders may contractually waive their inspection rights under Section 220, but a company cannot impose such a waiver in its charter or bylaws.
Read the full “Founders Alert” and more in this week’s edition of Founders Flash!
- Delaware Law enables stockholder access to company records (Founders Workbench)
- Study reveals increase in collaboration between startups and corporations (Upstart)
- NeuroMarketing – art, science, opportunity (Entrepreneur)
- Startup Hingeto goes on a 4-month roll (Inc)
- Why you still can’t use a chip card everywhere (Slate)