Delaware Sample Letter for Resolution of Matter
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FAQ
Section 228 requires that a Stockholder Communication (a "228 Notice") disclosing the corporate actions approved via Stockholder Consent be sent to all stockholders who would have been entitled to participate in the vote if it was taken at a meeting.
Once a stockholder makes a proper demand, the corporation has five business days to respond. A corporation's failure to respond is tantamount to refusing the stockholder's demand, which will allow the stockholder to file a lawsuit to compel inspection of the company's records.
Inspection of books and records. (a) As used in this section: (1) ?Stockholder? means a holder of record of stock in a stock corporation, or a person who is the beneficial owner of shares of such stock held either in a voting trust or by a nominee on behalf of such person.
A unanimous written consent of the board of directors for a Delaware corporation to be used when the board of directors takes action without a formal board meeting. This Standard Document has integrated notes with important explanations and drafting tips.
Under Section 220, a stockholder plaintiff must have a proper purpose for seeking a corporation's books and records. When that purpose is to investigate possible wrongdoing, she bears the burden to demonstrate a ?credible basis? to suspect that wrongdoing has occurred.
A Delaware corporation resolution form is a legal document that directors of a corporation adopt to document consent and agreement between all relevant parties to a corporate resolution.
Section 220 Books and Record Requests Section 220 of Delaware General Corporation Law gives stockholders the right to examine certain corporate books and records, if the request is made for a ?proper purpose.? One of the more common ?proper purposes? is to investigate possible corporate mismanagement or wrongdoing.
Under Section 220, a stockholder plaintiff must have a proper purpose for seeking a corporation's books and records. When that purpose is to investigate possible wrongdoing, she bears the burden to demonstrate a ?credible basis? to suspect that wrongdoing has occurred.
