Utah Revised Nonprofit Corporation Act
Utah Code Title 16, Chapter 6a
Click here for the current Nonprofit Corporation Act.
The below is not updated with new changes to the law after 2018!
16-6a-1602. Inspection of records
by directors and members.
(1) A director or member is entitled to inspect and copy any
of the records of the nonprofit corporation described in Subsection 16-6a-1601(5):
(a) during regular business hours;
(b) at the nonprofit corporation's principal office;
and
(c) if the director or member gives the nonprofit
corporation written demand, at least five business days before the date on
which the member wishes to inspect and copy the records.
(2) In addition to the rights set forth in Subsection (1), a
director or member is entitled to inspect and copy any of the other records of
the nonprofit corporation:
(a) during regular business hours;
(b) at a reasonable location specified by the
nonprofit corporation; and
(c) at least five business days before the date on
which the member wishes to inspect and copy the records, if the director or
member:
(i) meets
the requirements of Subsection (3); and
(ii) gives
the nonprofit corporation written demand.
(3) A director or member may inspect and copy the records
described in Subsection (2) only if:
(a) the demand is made:
(i) in
good faith; and
(ii) for a
proper purpose;
(b) the director or member describes with reasonable
particularity the purpose and the records the director or member desires to
inspect; and
(c) the records are directly connected with the
described purpose.
(4) Notwithstanding Section 16-6a-102,
for purposes of this section:
(a) "member" includes:
(i) a
beneficial owner whose membership interest is held in a voting trust; and
(ii) any
other beneficial owner of a membership interest who establishes beneficial
ownership; and
(b) "proper purpose" means a purpose
reasonably related to the demanding member's or director's interest as a member
or director.
(5) The right of inspection granted by this section may not
be abolished or limited by the articles of incorporation or bylaws.
(6) This section does not affect:
(a) the right of a director or member to inspect
records under Section 16-6a-710;
(b) the right of a member to inspect records to the same
extent as any other litigant if the member is in litigation with the nonprofit
corporation; or
(c) the power of a court, independent of this chapter,
to compel the production of corporate records for examination.
(7) A director or member may not use any information
obtained through the inspection or copying of records permitted by Subsection
(2) for any purposes other than those set forth in a demand made under
Subsection (3).
Enacted by Chapter 300, 2000 General Session