A contract for the sale of a company's interest is not necessarily a 'financial record' within s 421(1)(d) of the Corporations Act 2001 (Cth) entitling a director to inspection under s 421(2). Whether a contract constitutes a 'document of prime entry' or a document needed to explain financial statements depends on its terms and the probability of its consummation. An executory contract whose terms are not in evidence cannot be shown to fall within the definition. There is a distinction between a document that records and explains a transaction (a financial record) and a document that merely evidences the transaction itself.
The full text is available to signed-in members.