Louisiana Revised Statutes 12:1-1605 – Inspection of records by directors
Terms Used In Louisiana Revised Statutes 12:1-1605
- 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.
A. A director of a corporation is entitled to inspect and copy the books, records, and documents of the corporation at any reasonable time to the extent reasonably related to the performance of the director’s duties as a director, including duties as a member of a committee, but not for any other purpose or in any manner that would violate any duty to the corporation.
B. The district court of the parish where the corporation’s principal office or, if none in this state, its registered office is located may order inspection and copying of the books, records, and documents at the corporation’s expense, upon petition of a director who has been refused such inspection rights, unless the corporation establishes that the director is not entitled to such inspection rights. The court shall dispose of a petition under this Subsection by summary proceeding.
C. If an order is issued, the court may include provisions protecting the corporation from undue burden or expense, and prohibiting the director from using information obtained upon exercise of the inspection rights in a manner that would violate a duty to the corporation, and may also order the corporation to reimburse the director for the director’s expenses incurred in connection with the proceeding under Subsection B of this Section. In addition to a director’s rights under this Section, a director is also entitled to the corporation’s payment of expenses, and to the corporation’s provision of copies at the corporation’s expense, on the same basis as a shareholder under La. Rev. Stat. 12:1-1604, regardless of whether the director is a shareholder or holds the percentage of shares specified in La. Rev. Stat. 12:1-1602.
Acts 2014, No. 328, §1, eff. Jan. 1, 2015.