Access to information: Overview, definition and example
What is access to information?
Access to information refers to a contractual provision granting one party the right to review, inspect, or obtain certain data, documents, or records from another party. This clause ensures that the receiving party has the information necessary to monitor compliance, evaluate performance, or make informed decisions under the agreement.
For example, an investor agreement may include an access to information clause that allows investors to review a company’s financial statements and business records.
Why is access to information important?
Access to information is important because it promotes transparency, accountability, and trust between the parties. By clearly defining the scope, timing, and format of information sharing, these provisions help prevent disputes, ensure compliance, and facilitate collaboration.
Including access to information clauses protects the interests of both parties by setting clear expectations and providing a structured process for sharing or reviewing critical data.
Understanding access to information through an example
A shareholder agreement grants minority shareholders the right to access the company’s financial reports and meeting minutes upon request. This ensures that shareholders can stay informed about the company’s performance and governance, fostering transparency and trust in the relationship.
An example of an access to information clause
Here’s how an access to information clause might appear in a contract:
“The Company agrees to provide the Investor with reasonable access to its books, records, and financial statements during regular business hours upon written request. All information provided under this clause shall be treated as confidential and used solely for the purposes of monitoring the Company’s performance under this Agreement.”
Conclusion
Access to information provisions are essential for fostering transparency and ensuring that parties have the data needed to fulfill their roles effectively. By clearly outlining the rights, limitations, and processes for accessing information, these clauses minimize disputes and enhance collaboration. A well-drafted access to information clause protects both parties and supports a successful contractual relationship.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.