A group of mostly powerless Class B members in a utility services firm suspected its only Class A member of self-dealing, but their suspicions did not mate with corporate authority to do much about it. However, blessed with wide-ranging inspection and audit rights under an operating agreement, they pushed forward with requests to determine the
Inspection Rights
Special Shareholder Meetings: Where the minutes are kept, but the time (for notice) is wasted
By Jeffrey R. Whitley on
Judge Robinson recently issued an order containing what may be the first interpretation of the “Special Meeting” provisions of the North Carolina Business Corporation Act (the “Act”), N.C. Gen. Stat. §§ 55-7-02 and -03, in In re Matter of Special Shareholders’ Meeting of Phytonix Corporation. The statute provides shareholders with a mechanism to demand…