Considering the “murky legal landscape” surrounding a stockholder’s statutory right to demand inspection of a corporation’s books and records, the Delaware Court of Chancery recently decided that searching for support for a shareholder’s complaints about the board’s deal-making decisions as part of a proxy contest is not a “proper purpose”; however, the court left open the possibility that a proxy contest could serve as a proper purpose if the shareholder could present credible evidence of questionable transactions.

Read the article here.