§ 55-16-05. Inspection of records by directors. - North Carolina Statutes

§ 55‑16‑05. Inspection of records by directors.

(a)        A director of acorporation is entitled to inspect and copy the books, records, and documentsof the corporation at any reasonable time to the extent reasonably related tothe performance of the director's duties as a director, including duties as amember of a committee, but not for any other purpose or in any manner thatwould violate any duty to the corporation.

(b)        The superior courtof the county where the corporation's principal office, or its registeredoffice if the corporation does not have a principal office in this State, islocated may order inspection and copying of the books, records, and documentsat the corporation's expense, upon application of a director who has beenrefused inspection rights, unless the corporation establishes that the directoris not entitled to inspection rights. The court shall dispose of an applicationunder this subsection on an expedited basis.

(c)        If an order isissued, the court may include provisions protecting the corporation from undueburden or expense, and prohibiting the director from using information obtainedupon exercise of the inspection rights in a manner that would violate a duty tothe corporation, and may also order the corporation to reimburse the directorfor the director's costs, including reasonable counsel fees, incurred inconnection with the application. (2005‑268, s. 36.)