Can the company refuse inspection simply by claiming you have an improper purpose?
It cannot refuse at will. The company must prove that your inspection serves an ‘improper purpose’ and may harm the company’s interests (for example, that you operate a competing business or have previously leaked confidential information). Merely asserting ‘trade secrets’ is not a valid ground for refusal; you are only subject to a confidentiality obligation when inspecting.
Source article: The Company Never Distributes Dividends or Shows You the Books? The Action for Inspection Rights Teaches You How to Legitimately Inspect the Accounts | Lawyer Kevin Jun Lin
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