Court Opinion

ID: 5903366
Source: CourtListenerOpinion
Date Created: 2022-01-13 03:28:31.337809+00
Date Added: 2024-06-11T08:45:45.208045
License: Public Domain

Order, Supreme Court, New York County (Paul G. Feinman, J.), entered on or about October 13, 2011, which denied the petition and dismissed the proceeding brought pursuant to Business Corporation Law § 624, unanimously affirmed, with costs.
The court properly denied the petition, finding that petitioner was not entitled to inspect respondent’s corporate documents since he was no longer a shareholder (see Matter of Rosenberg v Steinberg-Kass, 6 AD2d 685 [1st Dept 1958]). Petitioner waived his right to challenge the propriety of the termination of his shareholder interest in respondent by signing an agreement to that effect, and by failing to assert a right to inspect documents until more than six years after the termination (see Hadden v Consolidated Edison Co. of N.Y., 45 NY2d 466, 469 [1978]). Petitioner’s argument that he has a right to inspect the records even though he ceased to be a shareholder in 2002 is improperly raised for the first time in his reply brief. In any event, Business Corporation Law § 624 provides this right only to current shareholders (see Matter of Benishai v Ilan Props., 303 AD2d 226 [1st Dept 2003]). Concur—Tom, J.P., Moskowitz, Richter, Manzanet-Daniels and Clark, JJ.