Sec. 21.416. COMMITTEES OF BOARD OF DIRECTORS. (a) If authorized by the certificate of formation or bylaws of a corporation, the board of directors of the corporation may designate:
(1) committees composed of one or more directors; or
(2) directors as alternate members of committees to replace absent or disqualified committee members at a committee meeting, subject to any limitations imposed by the board of directors.
(b) To the extent provided by a resolution of the board of directors designating a committee or by the certificate of formation or bylaws and subject to Subsection (c), the committee has the authority of the board of directors.
(c) A committee of the board of directors may not:
(1) amend the certificate of formation, except to:
(A) establish series of shares;
(B) increase or decrease the number of shares in a series; or
(C) eliminate a series of shares as authorized by Section 21.155;
(2) propose a reduction of stated capital under Sections 21.253 and 21.254;
(3) approve a plan of merger, share exchange, or conversion of the corporation;
(4) recommend to shareholders the sale, lease, or exchange of all or substantially all of the property and assets of the corporation not made in the usual and regular course of its business;
(5) recommend to the shareholders a voluntary winding up and termination or a revocation of a voluntary winding up and termination;
(6) amend, alter, or repeal the bylaws or adopt new bylaws;
(7) fill vacancies on the board of directors;
(8) fill vacancies on or designate alternate members of a committee of the board of directors;
(9) fill a vacancy to be filled because of an increase in the number of directors;
(10) elect or remove officers of the corporation or members or alternate members of a committee of the board of directors;
(11) set the compensation of the members or alternate members of a committee of the board of directors; or
(12) alter or repeal a resolution of the board of directors that states that it may not be amended or repealed by a committee of the board of directors.
(d) A committee of the board of directors may authorize a distribution or the issuance of shares if authorized by the resolution designating the committee or the certificate of formation or bylaws.
(e) The board of directors may remove a member of a committee appointed by the board if the board determines the removal is in the best interests of the corporation. The removal of the member is without prejudice to any contract rights of the person removed. Appointment of a member of a committee does not create contract rights.
(f) The designation and delegation of authority to a committee of the board of directors does not relieve the board of directors or a director of responsibility imposed by law.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2005, 79th Leg., Ch. 64 (H.B. 1319), Sec. 60, eff. January 1, 2006.
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