What is required before a shareholder can access corporate books?

To access corporate books, a shareholder must provide five days’ written notice that states a proper purpose for requesting the information. This requirement is in place to balance a shareholder's right to inspect books and records with the corporation's need to protect its interests and maintain confidentiality.

The rationale behind requiring notice and a proper purpose ensures that shareholders are not frivolously or maliciously seeking access to sensitive information. A "proper purpose" typically means that the shareholder is seeking information related to their interest in the company, such as verifying the status of their investment, understanding corporate governance, or investigating potential mismanagement.

This protocol fosters transparency while ensuring that the requests are reasonable and justifiable, hence preventing potential abuse of shareholder rights. Accessing corporate books without such a notice could undermine the operational integrity and confidentiality of corporate affairs.

In contrast, a majority shareholder agreement, approval from the board of directors, and a notarized request are not standard prerequisites for accessing corporate books, making them less relevant to the established process for inspection.