Statutory inspection rights let an owner obtain company records on a stated proper purpose. Used before litigation, they build the particularised facts that a derivative or oppression claim requires.
Proper purpose means one reasonably related to the person’s interest as an owner. Investigating suspected mismanagement, valuing an interest, and communicating with other owners are recognised. Curiosity, harassment, and purposes tied to a competing business are not.
Credible basis. For investigations of wrongdoing, most courts require some evidence from which mismanagement could be inferred — a low threshold, but not none.
Scope. Charter documents, bylaws, minutes and shareholder lists are usually readily available. Accounting records, board materials and, increasingly, officer emails are available where necessary and essential to the stated purpose. Courts tailor the scope; asking for everything invites a narrow order.
Conditions. Production is often subject to confidentiality undertakings, and sometimes to a provision deeming the documents incorporated into any later complaint.
Procedure. A written demand under oath, stating the purpose and the records sought, with proof of ownership. Defects in the demand are the company’s first line of defence, so the demand itself should be drafted with the statute open.
Summary proceedings mean these are resolved in months, not years.