Texas Business Organizations Code

§ 1.003 — DISINTERESTED PERSON

BO § 1.003Title 1. GENERAL PROVISIONS · Ch. 1. DEFINITIONS AND OTHER GENERAL PROVISIONS · Art. A. DEFINITIONS AND PURPOSE

Statute text

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(a)For purposes of this code, a person is disinterested with respect to the approval of a contract, transaction, or other matter, or to the consideration of the disposition of a claim or challenge relating to a contract, transaction, or particular conduct, if the person or the person's associate:

(1)is not a party to the contract or transaction or materially involved in the conduct that is the subject of the claim or challenge; and

(2)does not have a material financial interest in the outcome of the contract or transaction or the disposition of the claim or challenge.

(b)For purposes of Subsection (a), a person is not materially involved in a contract or transaction that is the subject of a claim or challenge and does not have a material financial interest in the outcome of a contract or transaction or the disposition of a claim or challenge solely because:

(1)the person was nominated or elected as a governing person by a person who is:

(A)interested in the contract or transaction; or

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Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.