Question

In the set of hypotheticals there is the heading "Business Case Problem - Exercise A (Rights of Shareholders". It involves a woman named Debra Woods. Although its not specifically stated in the hypothetical, it seems there could be an issue of "preemptive rights".

Exercise A (Rights of Shareholders)

Debra Woods is the sole member of Hair Ventures, LLC. Hair Ventures owns 3 million shares of stock in Bioluster, Inc. For several years, Woods and other Bioluster, shareholders did not receive notice of shareholders’ meetings or financial reports. On learning that Bioluster planned to issue more stock, Woods, through Hair Ventures, demanded to see Bioluster’s books and records. Bioluster asserted that the request was not for a proper purpose. Does Woods have a right to inspect Bioluster’s books and records? If so, what are the limits? Do any of those limits apply in this case? Explain.

Answer 1