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Texas Business Corporation Act - Article 7.11. Deposit With Comptroller Of Amount Due Certain Shareholders And Creditors

Legal Research Home > Texas Lawyer > Business Corporation Act > Texas Business Corporation Act - Article 7.11. Deposit With Comptroller Of Amount Due Certain Shareholders And Creditors

Art. 7.11. Deposit With Comptroller of Amount Due Certain 
Shareholders and Creditors

A. Upon the voluntary or involuntary dissolution of a corporation, 
the portion of the assets distributable to a creditor or 
shareholder who is unknown or cannot be found after the exercise of 
reasonable diligence by the person or persons responsible for the 
distribution in liquidation of the corporation's assets shall be 
reduced to cash and deposited with the Comptroller, together with a 
statement giving the name of the person, if known, entitled to such 
fund, his last known address, the amount of his distributive 
portion, and such other information about such person as the 
Comptroller may reasonably require, whereupon the person or persons 
responsible for the distribution in liquidation of the 
corporation's assets shall be released and discharged from any 
further liability with respect to the funds so deposited.  The 
Comptroller shall issue his receipt for such fund and shall deposit 
same in a special account to be maintained by him.

B. On receipt of satisfactory written proof of ownership or of right 
to such fund within seven (7) years from the date such fund was so 
deposited, the Comptroller shall issue proper warrant therefor in 
favor of the person or persons then entitled thereto.  If no 
claimant has made satisfactory proof of right to such fund within 
seven (7) years from the time of such deposit the Comptroller shall 
then cause to be published in one issue of a newspaper of general 
circulation in Travis County, Texas, a notice of the proposed 
escheat of such fund, giving the name of the creditor or shareholder 
apparently entitled thereto, his last known address, if any, the 
amount of the fund so deposited, and the name of the dissolved 
corporation from whose assets such fund was derived.  If no claimant 
makes satisfactory proof of right to such fund within two months 
from the time of such publication, the fund so unclaimed shall 
thereupon automatically escheat to and become the property of the 
General Revenue Fund of the State of Texas.

Acts 1955, 54th Leg., p. 239, ch. 64, eff. Sept. 6, 1955.  Amended by 
Acts 1987, 70th Leg., ch. 93, Sec. 30, eff. Aug. 31, 1987;  Acts 
1997, 75th Leg., ch. 1423, Sec. 3.01, eff. Sept. 1, 1997.

Last modified: August 10, 2007