Feldman

*545 Opinion

The Financial Code and not the Corporations Code controls the rights of shareholders to inspect the records of state savings and loan associations. When a shareholder owns stock in the holding company and not the wholly owned subsidiary savings association, the shareholder has no right of access to minutes of the director’s meetings or accounting records. We recommend that the Legislature reexamine the limitations on shareholders of holding companies to inspect records of the subsidiary savings associations.

Appellants challenge the issuance of a peremptory writ of mandate granting respondent’s request to inspect certain accounting books and records of appellant Great Pacific Savings and Loan Association (hereafter Great Pacific). Appellants also challenge an award of $750 in sanctions based on the trial court’s determination that appellants had no justification for failing to comply with respondent’s inspection demand. (Corp. Code, § 1604.) We conclude the trial court erred in issuing the writ allowing inspection of Great Pacific’s records and in awarding sanctions.

Respondent is the owner of 32,000 shares of stock in appellant San Mateo Financial Corporation…