Parsons v. Jefferson-Pilot Corp.

426 S.E.2d 685 (1993)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Parsons (P) owned 300,000 shares of Jefferson-Pilot (D) and requested permission to inspect and copy designated corporate records that would enable her to communicate with D's shareholders. D refused full access on the grounds that D claimed it did not keep such records and that she would not be allowed to look at accounting records to determine if any possible mismanagement or misappropriation had occurred. P narrowed her accounting request to records dealing with executive compensation and D still refused to comply. P filed a motion for a preliminary injunction. D moved for a summary judgment and sanctions under North Carolina's Rule 11. The judge denied the Rule 11 motion and ordered inspection of the accounting records but not the beneficial stockowner records as D did not have any. Both parties appealed. The Court of appeals affirmed in part the decision but remanded for a further determination to determine if the accounting records requested were proper and within the scope of the described purpose. It also concluded that P had no right to inspect the records as stated in 55-16-02(b) as D was a public corporation.