Tex. Bus. Orgs. Code § 21.553 · Subchapter L. DERIVATIVE PROCEEDINGS
DEMAND.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A shareholder may not institute a derivative proceeding until the 91st day after the date a written demand is filed with the corporation stating with particularity the act, omission, or other matter that is the subject of the claim or challenge and requesting that the corporation take suitable action.
(b) The waiting period required by Subsection (a) before a derivative proceeding may be instituted is not required or, if applicable, shall terminate if:
(1) the shareholder has been notified that the demand has been rejected by the corporation;
(2) the corporation is suffering irreparable injury; or
(3) irreparable injury to the corporation would result by waiting for the expiration of the 90-day period.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 899 (H.B. 3603), Sec. 3, eff. September 1, 2019.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm
- Text hash
- sha256 c7b272ce0e187e15032ac308120d93ce62df9d727ca0bd764173a5335477c2f1
- 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
Cited by 1 provision
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 21.553. Each shows the citation as that text prints it.
Business Organizations Code
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