Texas Business Organizations Code - Section 22.055. Power To Assist Employee Or Officer
Legal Research Home >
Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 22.055. Power To Assist Employee Or Officer
§ 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
exceed:
(A) 100 percent of the officer's annual salary,
if the loan is made before the first anniversary of the officer's
employment; or
(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.
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
Last modified: August 11, 2007
|
