corporation problems

[moaman]

my son owns 30% in a small corp. in georgia. there is some creative book keeping going on and some cash skimming. all the corp. papers are being held at one of the owner's house. i am going to buy my son out and turn up the heat. what rights does he have in regards to access to books and corp. documents. and if the individual refuses him access where do we go from there. thanks Bill Newell

 

[loku]

Inspection of corporate records

The following law gives shareholders the right to inspect and copy corporate recores.

Georgia code sec. 14-2-1602(b) (http://www.ganet.state.ga.us/cgi-bin/pub/ocode/ocgsearch?docname=OCode/G/14/2/1602) Gives shareholders of a corporation the right to inspect and copy, during regular business hours at the corporation's principal office, the records of the corporation if he gives the corporation written notice of his demand at least five business days before the date on which he wishes to inspect and copy.


Under sec. 14-2-1604(a)(http://www.ganet.state.ga.us/cgi-bin/pub/ocode/ocgsearch?docname=OCode/G/14/2/1604) If a corporation does not allow a shareholder to inspect and copy records, the superior court of the county where the corporation's registered office is located may summarily order inspection and copying of the records demanded at the corporation's expense upon application of the shareholder.

Under sec. 14-2-1604(b)( http://www.ganet.state.ga.us/cgi-bin/pub/ocode/ocgsearch?docname=OCode/G/14/2/1604) If a corporation does not within a reasonable time allow a shareholder to inspect and copy any other record, the shareholder who complies with subsections (c) and (d) of Code Section 14-2-1602 may apply to the superior court in the county where the corporation's registered office is located for an order to permit inspection and copying of the records demanded. The court shall dispose of an application under this subsection on an expedited basis.

See the cited code sections for more detail.