SPAR (US:SGRP) Newsfileยท2025-07-11 20:00Core Viewpoint - SPAR Group, Inc. is under scrutiny as a large shareholder, Mr. Robert G. Brown, has requested the production of the company's books and records to investigate potential breaches of fiduciary duty by the Board of Directors and management [1]. Group 1: Shareholder Actions - On March 13, 2025, Mr. Brown formally demanded to inspect the company's books and records [2]. - Following a lack of compliance, Mr. Brown sent additional letters expressing concerns on April 16, 2025, and a supplemental demand on June 5, 2025, after the termination of a merger transaction with Highwire [2]. - On July 1, 2025, the company acknowledged Mr. Brown's request, stating that "a material initial production of the books and records of the Company will be made available" [3]. Group 2: Requested Documentation - The requested documentation includes all Board materials, documents, and communications related to Highwire Capital, financing commitments, shareholder meeting minutes, and Form 10-K filings from January 1, 2022, to the present [5][6]. - Additional requests cover financial statements, tax returns, general ledgers, bank statements, and any documents related to mergers or asset sales from 2022 to the present [6][7]. - Specific inquiries also include communications regarding related-party transactions, legal bills related to shareholder meetings, and any discussions about the Highwire merger and its subsequent termination [7][13]. Group 3: Governance and Compliance Issues - The documentation request highlights potential governance issues, including the company's failure to maintain the required number of board members and compliance with bylaws [7][9]. - There are concerns regarding the relationship between the CEO and related parties, as well as the company's due diligence efforts related to the Highwire merger [8][9]. - The request also seeks clarity on the company's financial practices, including cash flow projections and the handling of subsidiary acquisitions [8][9].