§ 55-16-04. Court-ordered inspection. - North Carolina Statutes

§55‑16‑04.  Court‑ordered inspection.

(a)        If a corporationdoes not allow a shareholder who complies with G.S. 55‑16‑02(a) toinspect and copy any records required by that subsection to be available forinspection, the superior court of the county where the corporation'sprincipal office (or, if none in this State, its registered office) is locatedmay, upon application of the shareholder, summarilyorder inspection and copying of the records demanded at the corporation'sexpense.

(b)        If a corporationdoes not within a reasonable time allow a shareholder to inspect and copy anyother record, the shareholder who complies with G.S. 55‑16‑02(b)and (c) may apply to the superior court in the county where thecorporation's principal office (or, if none in this State, its registeredoffice) is located for an order to permit inspection and copying of the recordsdemanded.  The court shall dispose of an application under this subsection onan expedited basis.

(c)        If the court ordersinspection and copying of the records demanded, it shall also order thecorporation to pay the shareholder's costs (including reasonable attorneys'fees) incurred to obtain the order unless the corporation proves that itrefused inspection in good faith because it had a reasonable basis for doubtabout the right of the shareholder to inspect the records demanded.

(d)        If the court ordersinspection and copying of the records demanded, it may impose reasonablerestrictions on the use or distribution of the records by the demandingshareholder. (1901, c. 2, s. 49; Rev., s. 1179, C.S., s. 1172;G.S., s. 55‑109; 1955, c. 1371, s. 1; 1965, c. 609; 1973, c. 469, s. 11;1989, c. 265, s. 1.)