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State Ex Rel. Pillsbury v. Honeywell, Inc. Case Brief
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Case Brief Summary & Legal Analysis
tl;dr: A shareholder, motivated solely by political opposition to the Vietnam War, bought stock to force a company to stop making munitions. The court denied his request to inspect corporate records, finding his purpose was not germane to his economic interest as a shareholder.
Legal Significance: Establishes that a shareholder’s right to inspect corporate records requires a “proper purpose” related to an economic interest in the corporation. A purely social or political agenda, unrelated to investment value or corporate well-being, is insufficient to compel inspection.
State Ex Rel. Pillsbury v. Honeywell, Inc. Law School Study Guide
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Case Facts & Court Holding
Key Facts & Case Background
The petitioner, an anti-Vietnam War activist, learned that Honeywell, Inc. manufactured fragmentation bombs. Motivated solely by a desire to stop this production, he purchased one share of Honeywell stock. He also had a pre-existing contingent beneficial interest in 242 shares held in a family trust, of which he was previously unaware. The petitioner admitted in a deposition that his only reason for acquiring the stock was to gain a platform to persuade management and other shareholders to change the company’s policy, driven by his social and political convictions. He demanded access to Honeywell’s shareholder lists and records concerning munitions manufacturing to communicate his views to other shareholders and potentially elect new directors. Honeywell refused the demand. The petitioner then sought a writ of mandamus to compel inspection, conceding that his purpose was not related to any economic concern for his investment but was instead to advance his personal political and social agenda.
Court Holding & Legal Precedent
Issue: Does a shareholder have a right to inspect corporate books and records when their sole and admitted purpose is to advance a personal political or social agenda, rather than a purpose germane to their economic interest in the corporation?
No. The court affirmed the denial of the writ of mandamus, holding Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culp
IRAC Legal Analysis
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IRAC (Issue, Rule, Analysis, Conclusion) is the exact format professors want to see in your exam answers. Our exclusive Flash-to-Full briefs combine holding, analysis, and rule statements formatted to match what A+ students produce in exams. These structured briefs help reinforce the essential legal reasoning patterns expected in law school.
Legal Issue
Does a shareholder have a right to inspect corporate books and records when their sole and admitted purpose is to advance a personal political or social agenda, rather than a purpose germane to their economic interest in the corporation?
Conclusion
This case is a landmark decision defining the "proper purpose" doctrine for Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nu
Legal Rule
A shareholder's right to inspect corporate records is limited by the common Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolo
Legal Analysis
The court reasoned that the right of inspection, while fundamental to corporate Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et do
Flash-to-Full Case Opinions
Flash Summary
- A shareholder’s right to inspect corporate records requires a “proper purpose”