Former employee sues startup for financials in order to value granted stock
The article links to the actual law cited, read it, it only takes a few minutes.http://delcode.delaware.gov/title8/c001/sc07/#220It does make it seem very cut and dry that any employee who has a single share is allowed to view not only the financials but also the cap table and shareholder list.To be honest, if this is the case I'm very surprised that fund managers like T Rowe Price and Fidelity haven't been invoking it for as long as they've held shares to do their monthly marking of their private positions.  I mean, doesn't it seem like they actually have a fiduciary duty to do this as it lets them most accurately value the holdings that they have?If this is really the case then, unless the companies can force some sort of NDA on shareholders, then this opens the floodgates where any company that has vested shareholders, not just option holders, is going to have its books made public?This seems like a positive thing for employees as each new round would be scrutinized looking for provisions in the new raise that could screw employee's ie ratchets or liquidation preferences.