Delaware Cases Shed Light On Electronic Books And Records

Law360 (January 28, 2020, 3:32 PM EST) -- Corporations are well advised to observe corporate formalities and maintain proper books and records. That means, among other things, that corporations should document their actions in minutes, board resolutions or by other formal means.

Failing to do so exposes a company's internal email, text messages and other electronically stored information, known as ESI, to prelitigation books and records demands. In other words, the company may be compelled to turn over its dirty laundry even without any litigation filed. Although books and records were historically viewed as a relatively narrow set of documents (e.g., the stock ledger, board minutes, financial statements, tax...

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