State Codes and Statutes

Statutes > Utah > Title-16 > Chapter-06a > 16-6a-1604

16-6a-1604. Court-ordered inspection of corporate records.
(1) (a) A director or member may petition the applicable court if:
(i) a nonprofit corporation refuses to allow a director or member, or the director's ormember's agent or attorney, to inspect or copy any records that the director or member is entitledto inspect or copy under Subsection 16-6a-1602(1); and
(ii) the director or member complies with Subsection 16-6a-1602(1).
(b) If petitioned under Subsection (1)(a), the court may summarily order the inspection orcopying of the records demanded at the nonprofit corporation's expense on an expedited basis.
(2) (a) A director or member may petition the applicable court if:
(i) a nonprofit corporation refuses to allow a director or member, or the director's ormember's agent or attorney, to inspect or copy any records that the director or member is entitledto inspect or copy pursuant to Subsections 16-6a-1602(2) and (3) within a reasonable timefollowing the director's or member's demand; and
(ii) the director or member complies with Subsections 16-6a-1602(2) and (3).
(b) If the court is petitioned under Subsection (2)(a), the court may summarily order theinspection or copying of the records demanded.
(3) If a court orders inspection or copying of the records demanded under Subsection (1)or (2), unless the nonprofit corporation proves that it refused inspection or copying in good faithbecause it had a reasonable basis for doubt about the right of the director or member, or thedirector's or member's agent or attorney, to inspect or copy the records demanded:
(a) the court shall also order the nonprofit corporation to pay the director's or member'scosts, including reasonable counsel fees, incurred to obtain the order;
(b) the court may order the nonprofit corporation to pay the director or member for anydamages the member incurred;
(c) if inspection or copying is ordered pursuant to Subsection (2), the court may order thenonprofit corporation to pay the director's or member's inspection and copying expenses; and
(d) the court may grant the director or member any other remedy provided by law.
(4) If a court orders inspection or copying of records demanded, it may imposereasonable restrictions on the use or distribution of the records by the demanding director ormember.
(5) For purposes of this section, the applicable court is:
(a) the district court of the county in this state where the nonprofit corporation's principaloffice is located; or
(b) if the nonprofit corporation has no principal office in this state, the district court inand for Salt Lake County.

Amended by Chapter 364, 2008 General Session