People ex rel. Callanan v. Keeseville

Citations

• 106 A.D. 349
• 94 N.Y.S. 555

Syllabus

<p>Corporate books — an inspection by a stockholder of the general business books rests in the discretion of the court — an inspection of the stock book is an absolute right — the motive of the stockholder considered in the former, and not in the latter case.</p> <p>The right of a stockholder of a corporation to inspect the general business books of the corporation rests solely upon a common-law basis, and the granting or withholding of it, on refusal by the corporation, rests solely in the sound discretion of the court.</p> <p>The court will not grant the stockholder’s application for an inspection of such books unless he seeks to learn something which he has a right to know for his own protection, and his application must be in good faith and not for the purpose of injuring or annoying the corporation.</p> <p>The right of a stockholder of a corporation to inspect the stock book of such corporation stands upon a different basis. It is not only a common-law right, but is an absolute statutory right conferred by section 29 of the Stock Corporation Law (Laws of 1890, chap. 564, as amd. by Laws of 1892, chap. 688; Laws of 1900, chap. 128, and Laws of 1901, chap. 354).</p> <p>The motives actuating a stockholder in demanding an inspection of the stock hook are immaterial.</p>