The company suspects the successor shareholder wants to steal technology and poach clients—how to lawfully refuse inspection?
It must reply in writing within 15 days of the written request, giving specific, provable reasonable grounds—such as the shareholder currently working in the same industry, having leaked secrets, or having consulted for competitors. A refusal based on mere suspicion without grounds will most likely lose in an inspection-right suit and may also bear the other side’s enforcement costs.
