Texas Business Organizations Code - Section 22.055. Power To Assist Employee Or Officer
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Texas Laws > Business Organizations Code > Texas Business Organizations Code - Section 22.055. Power To Assist Employee Or Officer
Section: 21.802 22.001 22.002 22.051 22.052 22.053 22.054 22.055 22.056 22.101 22.102 22.103 22.104 22.105 22.106
§ 22.055. POWER TO ASSIST EMPLOYEE OR OFFICER. (a) A
corporation may lend money to or otherwise assist an employee or
officer of the corporation, but not a director, if the loan or
assistance may reasonably be expected to directly or indirectly
benefit the corporation.
(b) A loan made to an officer must be:
(1) made for the purpose of financing the officer's
principal residence; or
(2) set in an original principal amount that does not
(A) 100 percent of the officer's annual salary,
if the loan is made before the first anniversary of the officer's
(B) 50 percent of the officer's annual salary, if
the loan is made in any subsequent year.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Last modified: August 11, 2007