Tex. Bus. Orgs. Code § 21.958 · Subchapter S. PUBLIC BENEFIT CORPORATIONS
DERIVATIVE SUITS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In this section, "shareholder" means:
(1) shareholders of a public benefit corporation that own, individually or collectively, at least two percent of the corporation's outstanding shares; or
(2) shareholders of a public benefit corporation the shares of which are listed on a national securities exchange that own at least the lesser of:
(A) the percentage of shares described by Subdivision (1); or
(B) shares whose market value is at least $2 million.
(b) A shareholder of a public benefit corporation may maintain a derivative action on behalf of the corporation to enforce compliance with the requirements of Section 21.956(a).
Notes and commentary — not statutory text
History
Added by Acts 2017, 85th Leg., R.S., Ch. 776 (H.B. 3488), Sec. 4, eff. September 1, 2017.
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 4596e8fd32f1ccf3c7244a0d71b48966dea096077415a8413f36c039e2d529c8
- 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
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Business Organizations Code
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.