J
Jason Smith
Guest
I am a consulting engineer in the state of Washington. I am a 'junior partner' in my firm. My firm is transferring from an Limited Liability Company business structure to a Professional Services Sub-Chapter S Corporation.
They previously had a minimum ownership requirement before allowing junior partners access to the company's financial records. My understanding of C Corporations is that they are required to provide financial disclosure to shareholders. Is this true of S Corporations?
Is it legal to not allow access to the company's financial information until some minimum threshold of ownership is met? Is this a right I can be legally asked to give up if I agree to sign an agreement that includes such a clause? If they are required to provide disclosure to me, is the level of disclosure well-defined, or can they effictively give me minimal information and consider it 'financial disclosure'?
They previously had a minimum ownership requirement before allowing junior partners access to the company's financial records. My understanding of C Corporations is that they are required to provide financial disclosure to shareholders. Is this true of S Corporations?
Is it legal to not allow access to the company's financial information until some minimum threshold of ownership is met? Is this a right I can be legally asked to give up if I agree to sign an agreement that includes such a clause? If they are required to provide disclosure to me, is the level of disclosure well-defined, or can they effictively give me minimal information and consider it 'financial disclosure'?