[§414D-306]  Financial statements formembers.  (a)  A corporation upon written demand from a member shallfurnish that member its latest annual financial statements, which may beconsolidated or combined statements of the corporation and one or more of itssubsidiaries or affiliates, as appropriate, that include a balance sheet as ofthe end of the fiscal year and statement of operations for that year.  Iffinancial statements are prepared for the corporation on the basis of generallyaccepted accounting principles, the annual financial statements must also beprepared on that basis.

(b)  If annual financial statements arereported upon by a public accountant, the accountant's report must accompanythem.  If not, the statements must be accompanied by the statement of thepresident or the person responsible for the corporation's financial accountingrecords:

(1)  Stating the president's or other person'sreasonable belief as to whether the statements were prepared on the basis ofgenerally accepted accounting principles and, if not, describing the basis ofpreparation; and

(2)  Describing any respects in which the statementswere not prepared on a basis of accounting consistent with the statementsprepared for the preceding year. [L 2001, c 105, pt of §1]