If you are a minority member of a Tennessee limited liability company (“LLC”) or a minority shareholder of a Tennessee corporation, you may, at some time, need to review financial information of the LLC or the corporation. What financial records are you allowed to obtain? On what grounds can the LLC or corporation refuse to produce financial records to you? What do you do if the company will not supply you with the requested financial records?
The by-laws of the corporation of which you are a shareholder or the operating agreement of the LLC of which you are a member may specify the financial records to which you are entitled and may even require that the LLC or corporation provide you with certain financial information on an annual basis, or even more frequently. As a shareholder or member of a Tennessee corporation or LLC, you are entitled to certain financial information, as a matter of law, under the provisions of the Tennessee Business Corporation Act and Tennessee Limited Liability Company Act even if the by-laws or operating agreement don’t contain provisions allowing you to have any financial records whatsoever.
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