Tex. Bus. Orgs. Code § 11.405 · Subchapter I. RECEIVERSHIP
APPOINTMENT OF RECEIVER TO LIQUIDATE DOMESTIC ENTITY; LIQUIDATION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Subject to Subsection (b), a court that has jurisdiction over the property and business of a domestic entity under Section 11.402(b) may order the liquidation of the property and business of the domestic entity and may appoint a receiver to effect the liquidation:
(1) when an action has been filed by the attorney general under this chapter to terminate the existence of the entity and it is established that liquidation of the entity's business and affairs should precede the entry of a decree of termination;
(2) on application of the entity to have its liquidation continued under the supervision of the court;
(3) if the entity is in receivership and the court does not find that any plan presented before the first anniversary of the date the receiver was appointed is feasible for remedying the condition requiring appointment of the receiver;
(4) on application of a creditor of the entity if it is established that irreparable damage will ensue to the unsecured creditors of the domestic entity as a class, generally, unless there is an immediate liquidation of the property of the domestic entity; or
(5) on application of a member or director of a nonprofit corporation or cooperative association and it appears the entity is unable to carry out its purposes.
(b) A court may order a liquidation and appoint a receiver under Subsection (a) only if:
(1) the circumstances demand liquidation to avoid damage to interested persons;
(2) all other requirements of law are complied with; and
(3) the court determines that all other available legal and equitable remedies, including the appointment of a receiver for specific property of the domestic entity and appointment of a receiver to rehabilitate the domestic entity, are inadequate.
(c) If the condition necessitating the appointment of a receiver under this section is remedied, the receivership shall be terminated immediately, the management of the domestic entity shall be restored to its managerial officials, and the receiver shall redeliver to the domestic entity all of its property remaining in receivership.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.11.htm
- Text hash
- sha256 1ddc9d6569bd65776a31a9079b8ae37f675e5e59ede06eca8e71e54255ef27dc
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Business Organizations Code
Cited by 5 provisions
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 11.405. Each shows the citation as that text prints it.
Business Organizations Code
- Tex. Bus. Orgs. Code § 11.402JURISDICTION TO APPOINT RECEIVER.Printed as Section 11.405
- Tex. Bus. Orgs. Code § 11.413SUPPLEMENTAL PROVISIONS FOR APPLICATION OF PROCEEDS FROM LIQUIDATION OF NONPROFIT CORPORATION.Printed as Section 11.405
- Tex. Bus. Orgs. Code § 21.756JUDICIAL PROCEEDING TO ENFORCE CLOSE CORPORATION PROVISION.Printed as Section 11.405
- Tex. Bus. Orgs. Code § 101.551PERSONS ELIGIBLE TO WIND UP COMPANY.Printed as Section 11.054, 11.405, 11.409, or 11.410
- Tex. Bus. Orgs. Code § 101.617PROCEDURES FOR WINDING UP AND TERMINATION OF PROTECTED SERIES OR REGISTERED SERIES.Printed as Section 11.054, 11.405, 11.409, or 11.410
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.