Shareholders and a director of two corporations brought an application seeking interim access to corporate books and records, including accounting records and source documents.
The respondents argued that the applicants already had sufficient financial information through electronic systems and financial statements.
The court held that under ss. 20 and 155 of the Canada Business Corporations Act and the applicable unanimous shareholders agreement, shareholders and directors have a broad and largely unconditional right to inspect corporate accounting records.
The term “adequate accounting records” includes source documents and records used to prepare financial statements, not merely the statements themselves.
The court granted the applicants immediate and unfettered access to specified corporate records but dismissed a related request for a restraining order as premature.
