The right of a shareholder to demand to inspect a company’s books and records may be an important tool but it is not without limits. In a recent decision involving The Walt Disney Co. (Disney), the Delaware Court of Chancery reminded one litigant that disagreement over business decisions, including decisions about a company’s position on social issues, is not a proper basis for a shareholder action under Section 220.

Background

On Feb. 24, 2022, the Florida House of Representatives voted to approve the Parental Rights In Education Act (HB 1557). HB 1557 restricts the ability of teachers to discuss certain topics related to sexual orientation and gender identity. Disney did not take a public position on the bill prior to its passage by the House and received significant criticism for its silence from its employees. The Florida Senate passed HB 1557 on March 8, 2022, and the bill was sent to the governor for signature.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]