Inspection Rights refer to the right of an investor to inspect the books and records of a company they have invested in. These rights are usually included in the shareholders’ agreement, the articles of association, or other investment-related documents.
Inspection rights are important for investors because they allow them to monitor the financial performance of the company they have invested in and ensure that their investment is being managed properly. They can also help investors identify potential issues or risks that may affect the value of their investment.
In most cases, inspection rights are subject to certain limitations and restrictions, such as the requirement to provide advance notice, the appointment of an independent auditor, or the protection of confidential information. The terms and conditions of inspection rights can vary depending on the specific agreement or document, as well as the jurisdiction in which the company operates.