Alabama § 10A-18-1.05 - Inspection Rights of Members.

§ 10A-18-1.05. Inspection Rights of Members.

In lieu of any inspection rights of the members of a membership nonprofit corporation under the Alabama Nonprofit Corporation Law:

(a) A member of an Alabama statewide trade association is entitled to inspect the records required to be maintained by the Alabama statewide trade association under Sections 10A-18-1.04(a)(1) through (6) during regular business hours at the principal office of the Alabama statewide trade association provided that the member gives the Alabama statewide trade association written notice of the member’s demand at least five business days before the date on which the member wishes to inspect.

(b) A member may inspect the records under Sections 10A-18-1.04(a)(1) through (6) only if:

(1) the member’s request is made in good faith and for a proper purpose;

(2) the member’s request describes with reasonable particularity the member’s purpose and the records the member desires to inspect; and

(3) the records are directly connected with the member’s purpose.

(c) An Alabama statewide trade association may impose reasonable restrictions and conditions on access to and use of the records to be inspected under subsection (a), including designating information confidential and imposing nondisclosure and safeguarding, and may further keep confidential from its members and other persons, for a period of time as the Alabama statewide trade association deems reasonable, any information that the Alabama statewide trade association reasonably believes to be in the nature of a trade secret or other information the disclosure of which the Alabama statewide trade association in good faith believes is not in the best interest of the Alabama statewide trade association or could damage the Alabama statewide trade association or its activities or affairs or that the Alabama statewide trade association is required by law or by agreement with a third party to keep confidential. In any dispute concerning the reasonableness of a restriction under this subsection, the Alabama statewide trade association has the burden of proving reasonableness.

(d) This section does not limit the power of a court, upon showing of good cause, to compel the production of the books and records of an Alabama statewide trade association, including records not set forth in Section 10A-18-1.04, to the court for examination by a court appointed professional and to impose reasonable restrictions on the use of those books and records by that court appointed professional.