Delaware Business Litigation Report

Court of Chancery Explains Beneficial Ownership Proof Requirement

Smith v Horizon Lines, Inc., C.A. 4573-CC (August 31, 2009)

When the statute governing demands for inspection rights was changed to permit a demand by a beneficial owner, it also required proof of beneficial ownership. This decision explains what form that proof must take. An account statement that just has the owner's last name and does not indicate the date is not good enough. You would think that someone named "Smith" would have been told by now to be more explicit.

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