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One of the stockholders of our banking company requested a list of all shareholders and their ownership shares. Are we required to comply with this request? – IBA Compliance Connection

IBA Compliance Connection

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One of the stockholders of our banking company requested a list of all shareholders and their ownership shares. Are we required to comply with this request?

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Illinois law allows any shareholder to inspect shareholder records, including shareholder names, addresses, and the number and class of shares held by each, “but only for a proper purpose.” The shareholder must make a written request stating “with particularity the records sought to be examined and the purpose therefor.” 805 ILCS 5/7.75(b). A person who does not have a proper purpose may be denied the right to inspect the corporation records. 805 ILCS 5/7.75(d).

Satisfaction of curiosity is not a proper purpose. Logal v. Inland Steel Industries, Inc., 209 Ill.App.3d 304 (1st Dist. 1991). However, a shareholder need only assert a single proper purpose in order to gain access to a corporation’s books and records. Weigel v. O'Connor, 57 Ill.App.3d 1017 (1st Dist. 1978).