16-10a-1604 - Court-ordered inspection. - Utah Statutes

16-10a-1604. Court-ordered inspection.
(1) If a corporation does not allow a shareholder or director, or the shareholder's ordirector's agent or attorney, who complies with Subsection 16-10a-1602(1) to inspect or copy anyrecords required by that subsection to be available for inspection, the district court of the countyin this state in which the corporation's principal office is located, or in Salt Lake County if it hasno principal office in this state, may summarily order inspection and copying of the recordsdemanded at the corporation's expense, on application of the shareholder or director deniedaccess to the records.
(2) If a corporation does not within a reasonable time allow a shareholder or director, orthe shareholder's or director's agent or attorney, who complies with Subsections 16-10a-1602(2)and (3), to inspect and copy any records which he is entitled to inspect or copy by this part, thenupon application of the shareholder or director denied access to the records, the district court ofthe county in this state where the corporation's principal office is located or, if it has no principaloffice in this state, the district court for Salt Lake County, may summarily order the inspection orcopying of the records demanded. The court shall dispose of an application under this subsectionon an expedited basis.
(3) If a court orders inspection or copying of records demanded, it shall also order thecorporation to pay the shareholder's or director's costs incurred to obtain the order, includingreasonable counsel fees, unless the corporation proves that it refused inspection in good faithbecause it had a reasonable basis for doubt about the right of the shareholder or director, or theshareholder's or director's agent or attorney, to inspect the records demanded.
(4) If a court orders inspection or copying of records demanded, it may:
(a) impose reasonable restrictions on the use or distribution of the records by thedemanding shareholder or director;
(b) order the corporation to pay the shareholder or director for any damages incurred as aresult of the corporation's denial if the court determines that the corporation did not act in goodfaith in refusing to allow the inspection or copying;
(c) if inspection or copying is ordered pursuant to Subsection (2), order the corporationto pay the expenses of inspection and copying if the court determines that the corporation did notact in good faith in refusing to allow the inspection or copying; and
(d) grant the shareholder or director any other available legal remedy.

Amended by Chapter 364, 2008 General Session