Tex. Ins. Code § 823.402 · Subchapter I. LIMITATIONS RELATING TO CONTROLLED INSURERS
PROHIBITION ON VOTING CERTAIN SECURITIES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A security that is the subject of an agreement or arrangement regarding an acquisition or that is acquired or to be acquired in violation of this chapter or a rule or order under this chapter may not be voted at a shareholders' meeting or counted for quorum purposes. An action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though the security was not outstanding.
(b) An action taken at a shareholders' meeting is not invalidated by the voting of a security to which Subsection (a) applies unless:
(1) the action would materially affect control of the insurer; or
(2) a court of this state invalidates the action.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.823.htm
- Text hash
- sha256 a70e140727fc1667b542bfc3068e8953b6e211ccedb00eaea446ed94f8d23fbd
- 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
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.