California Codes

Cal. Corporations Code § 1603 (2026)

✓ current as of May 2026

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(a)Upon refusal of a lawful demand for inspection, the superior court of the proper county, may enforce the right of inspection with just and proper conditions or may, for good cause shown, appoint one or more competent inspectors or accountants to audit the books and records kept in this state and investigate the property, funds and affairs of any domestic corporation or any foreign corporation keeping records in this state and of any subsidiary corporation thereof, domestic or foreign, keeping records in this state and to report thereon in such manner as the court may direct.

(b)All officers and agents of the corporation shall produce to the inspectors or accountants so appointed all books and documents in their custody or power, under penalty of punishment for contempt of court.

(c)All expenses of the investigation or audit shall be defrayed by the applicant unless the court orders them to be paid or shared by the corporation.

Notes of Decisions

Cited in 4 cases (2 in the last 5 years), 2013–2024 · leading case: JUUL Labs, Inc. v. Grove (Del. Ch. 2020).

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JUUL Labs, Inc. v. Grove (Del. Ch. 2020). “Cal. Corp. Code § 1603 (a). Under the California statute, “[a]ll expenses of the investigation or audit shall be defrayed by the applicant unless the court orders them to be paid or shared by the corporation.”

Mackel v. McDonough CA2/6 (Cal. Ct. App. 2024). “, § 1085; Corp. Code, § 1603, subd. (a).)1 We affirm.”

Preovolos v. Preovolos CA4/1 (Cal. Ct. App. 2024). “” (Corp. Code, § 1603, subd. (a), italics added.”

Geller v. Consultants for Pathology CA2/3 (Cal. Ct. App. 2013). “16 It was not known how long the audit would take, although the parties assumed it would 15 Corporations Code section 1603 provides that, upon a corporation’s refusal of a lawful demand for inspection, the court may, for good cause shown, appoint an accountant to audit the…”

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