13.1-774 - Financial statements for shareholders. - Virginia Statutes

§ 13.1-774. Financial statements for shareholders.

A. If requested in writing by any shareholder, a corporation shall furnishthe shareholder with the financial statements for the most recent fiscalyear, which may be consolidated or combined statements of the corporation andone or more of its subsidiaries, as appropriate, that include a balance sheetas of the end of the fiscal year, an income statement for that year, and astatement of changes in shareholders' equity for the year unless thatinformation appears elsewhere in the financial statements. If financialstatements are prepared for the corporation on the basis of generallyaccepted accounting principles, the annual financial statements must also beprepared on that basis.

B. If the annual financial statements are reported upon by a certified publicaccountant, the accountant's report must accompany them. If the annualfinancial statements are not reported upon by a certified public accountant,the president or the person responsible for the corporation's accountingrecords shall provide the shareholder with a statement of the basis ofaccounting used in preparation of the annual financial statements and adescription of any respects in which the statements were not prepared on abasis of accounting consistent with the statements prepared for the precedingyear.

C. If a corporation does not comply with a shareholder's request forfinancial statements within 30 days of delivery of such request to thecorporation, the circuit court in the city or county where the corporation'sprincipal office is located, or, if none in the Commonwealth, where itsregistered office is located may, upon application of the shareholder,summarily order the corporation to furnish such financial statements.

D. A public corporation may fulfill its responsibilities under this sectionby delivering the specified financial statements, or otherwise making themavailable, in any manner permitted by the applicable rules and regulations ofthe United States Securities and Exchange Commission.

(Code 1950, § 13.1-47; 1956, c. 428; 1975, c. 500; 1985, c. 522; 2005, c.765; 2010, c. 782.)