Legal Question in Business Law in California

do shareholders have the right to company computer and bank passwords?


Asked on 5/31/11, 3:28 pm

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Probably not, unless the shareholder is also a director of the corporation. Shareholders are entitled only to inspect records that are reasonably related to the interests of the shareholder as such, and I cannot imagine that any judge would believe a shareholder had the right to bank and computer passwords. See Corporations Code sections 1600 re access to shareholder lists; 1601 re access to books, records and minutes; and 1602 re a director's rights of inspection.

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Answered on 5/31/11, 4:06 pm
Terry A. Nelson Nelson & Lawless

Of course not. Only properly "authorized" officers and directors and employees would.

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Answered on 5/31/11, 5:02 pm
Shawn Jackson The Jackson Law Firm, P.C.

Well, that would depend upon the Shareholders Agreement and/or if it is a close corporation under California Law. The rights of shareholders vary depending upon the character of the corporation and the type of involvement by the shareholder. So, I would need to know more about the facts surrounding the situation.

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Answered on 6/03/11, 1:18 pm


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