Texas Business Organizations Code

§ 101.461 — PAYMENT OF EXPENSES

BO § 101.461Title 3. LIMITED LIABILITY COMPANIES · Ch. 101. LIMITED LIABILITY COMPANIES · Art. J. DERIVATIVE PROCEEDINGS

Statute text

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(a)In this section, "expenses" means reasonable expenses incurred by a party in a derivative proceeding, including:

(1)attorney's fees;

(2)costs in pursuing an investigation of the matter that was the subject of the derivative proceeding; or

(3)expenses for which the limited liability company may be required to indemnify another person.

(b)On termination of a derivative proceeding, the court may order:

(1)the limited liability company to pay expenses the plaintiff incurred in the proceeding if the court finds the proceeding has resulted in a substantial benefit to the limited liability company;

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Legislative history

Acts 2019, 86th Leg., R.S., Ch. 899 (H.B. 3603), Sec. 22, eff. September 1, 2019. Acts 2025, 89th Leg., R.S., Ch. 21 (S.B. 29), Sec. 19, eff. May 14, 2025.