§ 35-14-1604 — Court-Ordered Inspection

35-14-1604 . Court-ordered inspection. (1) If a corporation does not allow a shareholder who complies with 35-14-1602 (1) to inspect and copy any records required by that section to be available for inspection, the district court of the county where the corporation's principal office is located or, if its principal office is not located in this state, of the first judicial district may summarily order inspection and copying of the records demanded at the corporation's expense upon application of the shareholder.
(2) If a corporation does not within a reasonable time allow a shareholder who complies with 35-14-1602 (2) to inspect and copy the records required by that section, the shareholder, if the shareholder also complies with 35-14-1602 (3), may apply to the district court of the county where the corporation's principal office is located or, if its principal office is not located in this state, of the first judicial district 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.
(3) If the court orders inspection and copying of the records demanded under 35-14-1602 (2), it may impose reasonable restrictions on their confidentiality, use, or distribution by the demanding shareholder, and it shall also order the corporation to pay the shareholder's expenses incurred to obtain the order unless the corporation establishes that it refused inspection in good faith because the corporation had:
(a) a reasonable basis for doubt about the right of the shareholder to inspect the records demanded; or
(b) required reasonable restrictions on the confidentiality, use, or distribution of the records demanded to which the demanding shareholder had been unwilling to agree.

Legislative History

En. Sec. 218, Ch. 271, L. 2019.