Q: I am looking for the Statute that designates what financial documents are required to be given to an investor.
My investor is asking, aggressively, for my businesses bank statements and I don’t believe that this is documentation he is entitled to.
A:
Depending on what type of investment opportunity you are offering will determine whether state, federal, or both laws apply. If federal, then securities laws outlined in the Securities Act of 1933 and 1934 as well as regulations provided by the Security and Exchange Commission will apply.
Since you are looking to take on investors, at minimum you should be willing to provide documentation related to the financial viability of the investment. This includes a business and marketing plan, financial documents (income statement, bank records, balance sheet and more), and future financial projects. Refusing to provide an investor with these will likely result in them deciding not to invest their money with you. Alternatively, you can ask yourself what documents you would like to see if you were a potential investor. That can be your benchmark as to the legitimacy of the investor requests.
It is recommended that you contact a business attorney to handle your business transaction.
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