Statutes permit inspection of specified records upon written demand stating a proper purpose. Investigating suspected mismanagement is a recognized proper purpose, and Delaware section 220 is the most developed regime.
Scope is limited to records necessary for the stated purpose.
Alternative Names:
Section 220 Demand|Inspection Demand
Why it Matters?
Delaware courts have encouraged use of the tool before filing derivative complaints, which means a demand frequently signals litigation is coming and permits assessing exposure before a complaint arrives. Scope limitations confine production to what the stated purpose requires, and resisting overbroad demands is routine. Electronic communications have been ordered produced where formal records were inadequate, expanding the practical reach.
Frequently Confused with
Related terms
Frequently asked questions
What does a demand signal?
Are electronic communications discoverable?
