Legal question?

Question

For any attorneys out there. Is there any problem with a major shareholder (5% of voting stock), doing a background check on the Directors that are already in place, In the best interests of the company. There was not one done previously. What about the CFO?

Answer 1

I suggest you check first what was laid out in the voting rights of the company.  From there, you can identify the rights and limitations of all stockholders.

With regards to checking the records/performance of the Directors and the CFO, I believe you can always request for records particularly financial records showing the operations of the company.  Also, this is explicitly detailed in the M&A or By-laws of the company.  You can therefore exercise what is being stated there.