Texas Business Organizations Code - Section 21.552. Standing To Bring Proceeding
Legal Research Home >
Texas Laws > Business Organizations Code > Texas Business Organizations Code - Section 21.552. Standing To Bring Proceeding
§ 21.552. STANDING TO BRING PROCEEDING. (a) A
shareholder may not institute or maintain a derivative proceeding
unless:
(1) the shareholder:
(A) was a shareholder of the corporation at the
time of the act or omission complained of; or
(B) became a shareholder by operation of law from
a person that was a shareholder at the time of the act or omission
complained of; and
(2) the shareholder fairly and adequately represents
the interests of the corporation in enforcing the right of the
corporation.
(b) To the extent a shareholder of a corporation has
standing to institute or maintain a derivative proceeding on behalf
of the corporation immediately before a merger, Subchapter J or
Chapter 10 may not be construed to limit or terminate the
shareholder's standing after the merger.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006. Amended by
Acts 2005, 79th Leg., ch. 64, § 63, eff. Jan. 1, 2006.
Section: 21.461 21.462 21.501 21.502 21.503 21.504 21.551 21.552 21.553 21.554 21.555 21.556 21.557 21.558 21.559
Last modified: August 11, 2007
|
