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Marley owns 1 0 % of the common stock in Hometown Industries, Inc., and Cecil and Jonathan each own 4 5 % . Both Cecil
Marley owns of the common stock in Hometown Industries, Inc., and Cecil and Jonathan each own Both Cecil and Jonathan sit on Hometown's Board of Directors BOD and are paid officers, while Marley is only a shareholder with no other role in the company. Hometown has not paid dividends to shareholders in a number of years, despite the company's financial success. When Marley questions the lack of distributions, Cecil points out that any profits have been reinvested in the company. Jonathan shows Marley how the use of company profits has improved and strengthened the business, resulting in its current success. Knowing Marley is unhappy, Cecil and Jonathan offer to purchase all of Marley's shares in the company for $ per share. Marley believes his stock is worth much more, and asks to inspect Hometown's corporate books, but Cecil and Jonathan refuse. Does Marley have a right to inspect Hometown's corporate books?
a No because Marley lacks a proper purpose.
b Yes, because Marley's request is related to his interest as a shareholder.
c No because Marley is a minority shareholder.
d Yes, because Marley is a shareholder.
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