Arizona Laws 10-1604. Court-ordered inspection
A. If a corporation does not allow a shareholder who complies with section 10-1602, subsection A to inspect and copy any records required by that subsection to be available for inspection, the court in the county where the corporation’s known place of business is located may summarily order inspection and copying of the records demanded at the corporation’s expense on application of the shareholder.
Terms Used In Arizona Laws 10-1604
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Court: means the superior court of this state. See Arizona Laws 10-140
- Distribution: means a direct or indirect transfer of money or other property, except its own shares, or incurrence of indebtedness by a corporation to or for the benefit of its shareholders in respect of any of its shares. See Arizona Laws 10-140
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Known place of business: means the known place of business required to be maintained pursuant to section 10-501. See Arizona Laws 10-140
- Principal office: means the office, in or out of this state, so designated in the annual report where the principal executive offices of a domestic or foreign corporation are located or in any other document executed by the corporation by an officer and delivered to the commission for filing. See Arizona Laws 10-140
- Shareholder: means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent of the rights granted by a nominee certificate on file with a corporation. See Arizona Laws 10-140
B. If a corporation does not allow within a reasonable time a shareholder to inspect and copy any other record, the shareholder who complies with section 10-1602, subsections B and C may apply to the court in the county where the corporation’s principal office is located for an order to permit inspection and copying of the records demanded. The court shall dispose of an application under this subsection on an expedited basis.
C. If the court orders inspection and copying of the records demanded, it shall also order the corporation to pay the shareholder’s costs, including reasonable attorney fees, incurred to obtain the order, unless the corporation proves that it refused inspection in good faith because it had a reasonable basis for doubt about the right of the shareholder to inspect the records demanded. The court may order a shareholder to pay all or a portion of the corporation’s costs, including reasonable attorney fees, if the demand to inspect is denied in whole or in material part.
D. If the court orders inspection and copying of the records demanded, it may impose reasonable restrictions on the use or distribution of the records by the demanding shareholder.