Q & A with Pitcoff Law Group:
What are my legal rights when it comes to inspecting company books and records? Do I have such a right? And if yes, what items then do I have an absolute right to review?
The first thing that you should do is check either your operating agreements, your LLC, your shareholder agreements, the bylaws and also check your partnership agreements. If you are simply acting as a business-partnership and you are probably wondering, in what ways you may inspect the records and what records you are allowed to inspect? As long as you are a current standing member when you request such information, you do not need any special justification to receive them.
The next question would be, what can I, as a managing member, review? Is there anything else that I can look at that I have not thought of before? May I look at invoices? May I look at business contracts? May I look at the business expenses?
Typically that’s going to depend on the circumstances that surround the reason for your wanting to inspect the books and records. Sometimes this is what a judge is going to deal with in court, so you need to make a good face showing as to what additional records above those relating to taxes that you may be entitled to review.
If you are ever curious to know about what your rates are, be sure to check your operating agreements and your contracts. You should also know that at times, even if you are entitled to inspect books and records, you may not be entitled to inspect confidential information such as: trade-secrets. Typically there are reasons for that, that are outlined in the operating agreement or shareholder’s agreement itself, but nevertheless, it is something to consider.
For more information or to speak with a legal professional at Pitcoff Law Group, call: (646) 386-0990 or email: email@example.com today. We would be happy to assist you.