Texas Business Organizations Code - Section 11.306. Stay Of Judgment
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Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 11.306. Stay Of Judgment
§ 11.306. STAY OF JUDGMENT. (a) If, in an action brought
under this subchapter, a filing entity has proved by a
preponderance of the evidence and obtained a finding that the
problems for which the filing entity has been found guilty were not
wilful or the result of a failure to take reasonable precautions,
the entity may make a sworn application to the court for a stay of
entry of the judgment to allow the filing entity a reasonable
opportunity to cure the problems for which it has been found guilty.
An application made under this subsection must be made not later
than the fifth day after the date the court makes its findings under
Section 11.305.
(b) After a filing entity has made an application under
Subsection (a), a court shall stay the entry of the judgment if the
court is reasonably satisfied after considering the application and
evidence offered with respect to the application that the filing
entity:
(1) is able and intends in good faith to cure the
problems for which it has been found guilty; and
(2) has not applied for the stay without just cause.
(c) A court shall stay an entry of judgment under Subsection
(b) for the period the court determines is reasonably necessary to
afford the filing entity the opportunity to cure its problems if the
entity acts with reasonable diligence. The court may not stay the
entry of the judgment for longer than 60 days after the date the
court's findings are made.
(d) The court shall dismiss an action against a filing
entity that, during the period the action is stayed by the court
under this section, cures the problems for which winding up and
termination is sought and pays all costs accrued in the action.
(e) If a court finds that a filing entity has not cured the
problems for which winding up and termination is sought within the
period prescribed by Subsection (c), the court shall enter final
judgment requiring a winding up of the filing entity's business.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 11.253 11.254 11.301 11.302 11.303 11.304 11.305 11.306 11.307 11.308 11.309 11.310 11.311 11.312 11.313
Last modified: August 11, 2007
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