Information & Inspection Rights
Also called: Investor Information Rights · Books and Records Access
Information and inspection rights entitle a shareholder — typically an investor — to receive regular financial reporting and, in some cases, to inspect the company's books and records directly. They give an investor visibility into the business between board meetings and funding rounds.
In more detail
Standard information rights require the company to provide periodic financial statements (monthly or quarterly management accounts, annual audited accounts) automatically, without the investor needing to request them.
Inspection rights go further — a right to physically or virtually access company records on reasonable notice — and are typically reserved for larger investors or triggered only above a minimum ownership threshold, since granting every small investor direct access to internal records is impractical.
These rights are usually scaled to investment size: a threshold (a minimum shareholding percentage) determines which investors receive the fuller inspection right versus just standard periodic reporting.
An investor holding above a defined ownership threshold receives monthly management accounts automatically and can request to inspect the company's books and records with 10 business days' notice — a smaller investor below that threshold receives only annual reporting.
What our lawyers check
- What reporting is provided automatically, and how frequently
- Whether inspection rights exist, and what ownership threshold triggers them
- Notice period required to exercise inspection rights
- Whether information rights survive if the investor's ownership falls below the threshold
Contracts where this clause matters
Related terms
This definition is general information about commercial contracting practice, not legal advice. How a clause operates depends on the specific wording of your agreement and the law that governs it. For advice on your contract, have it reviewed by a lawyer.
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