Legal | Tax | Compliance
Legal | Tax | Compliance
Shareholders of a corporation have specific rights in the general meeting. This first part of the series explains information rights: the right to inspect, the right to request information, and the right to a special audit.
Information is crucial for the exercise of shareholder rights. Without knowledge of what is going on in the company, the shareholder cannot make informed decisions. However, there is a tension between shareholders' rights and the company's legitimate interest in protecting trade secrets and other confidential information, since the shareholder is not bound by any duty of loyalty or confidentiality. Therefore, the board of directors has a discretionary power, and its abuse or unjustified denial of the information rights can be referred to the court.
