Given that New Jersey boasts some of the strongest protections for minority shareholders, it is generally assumed that the state provides a favorable forum for shareholders’ challenges to corporate actions. And, until recently, it was relatively easy for a shareholder to assert a derivative action against a New Jersey corporation. But a recent published decision of the Appellate Division, which follows an amendment to the New Jersey Business Corporation Act earlier this year, may be changing that. Is New Jersey really becoming more business friendly? As New Jersey is home to approximately 20 companies on the Fortune 500 list, some would argue it’s about time.

The Statutory Right to Inspect Corporations’ Books