Shareholder rights

[tutornetuk]

I am the holder of 175,000 shares in a corporation registered in Delaware. In spite of repeated requests, neither I or any other shareholder I know has received any audited financial statements for more than a year. We also receive no replies to any and all questions about the operations of the company.

In the meantime, they appear to have suspended operations and haven't paid many of their creditors for a while. I am a creditor as well.

As a shareholder and / or creditor, what rights do I have to see the company's books and records? Can I call a shareholders' meeting to force answers from the directors? Finally, how do I appoint an attorney to act on my behalf on a contingency basis?

 

[loku]

Inspection of books of Delaware Corp

Section 220 of the Delaware Corporations Code gives stockholders the right to inspect the books and records of the corporation. For the procedure involved, and the other details, see Section 220 at http://198.187.128.12/delaware/lpext.dll?f=templates&fn=main-h.htm&2.0.

Unless you are suing the company for damages, you can not get an attorney to act for you on a contingency basis.

 

[tutornetuk]

Thank you for your reply. I have followed the link and read the relevant sections. It would appear that I should be able to get access to the records. In the meantime, I have been informed by another stockholder that they have gained access to the accounting records and that they are willing to pass copies to me.

I would still like to appoint an attorney if I can. I imagine that there will indeed be a claim for compensation. You see, I sold a company I owned to them for £250,000 and 450,000 shares. I have an agreement to that effect signed by their CFO. To date I have only received the 175,000 shares I referred to, and no cash.

In their filings to the SEC, they claim to have acquired my company, referring to it by name. I can't see how they could deny the agreement.

What I need now is an attorney to act on my behalf on a contingency basis. How do I go about it? If this of relevance, they are a Delaware corporation with operations based in Reston, Virginia.