Chancery Permits Limited Stockholder Inspection of Nonpublic Books and Records for Better Valuation of Shares

Kaan Ekiner and Mark Felger, writing in the Delaware Business Court Insider, discuss a recent Delaware Court of Chancery decision that permits a stockholder of a publicly traded company to inspect the books and records of the public company’s nonpublic subsidiary to “more accurately” value the public corporation’s publicly traded shares. In this post-trial decision, the court ordered a narrow scope for inspection sufficiently tied to the current value of the publicly traded shares, including inspection of books and records held by the nonpublic subsidiary.

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Kaan Ekiner

Member

kekiner@cozen.com

(302) 295-2046

Mark E. Felger

Co-Chair, Bankruptcy, Insolvency & Restructuring

mfelger@cozen.com

(302) 295-2087


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