Shareholder’s Rights V. The Accountant-Client Privilege

It’s not unusual for a business or its executives to be accused of mismanagement or wrongdoing by a minority shareholder and then get a request for company financial records. Shareholders and members do have an absolute right to access company articles of incorporation and bylaws, but their right to examine additional company documents and private financial records is not absolute. Under federal law there is no accountant-client privilege, but many states have established one by statute. Looking at precedent in two states in particular, this article discusses when companies can and cannot deny requested documents based on privilege.