Texas Business Organizations Code

§ 11.404 — APPOINTMENT OF RECEIVER TO REHABILITATE DOMESTIC ENTITY

BO § 11.404Title 1. GENERAL PROVISIONS · Ch. 11. WINDING UP AND TERMINATION OF DOMESTIC ENTITY · Art. I. RECEIVERSHIP

Statute text

(a)Subject to Subsection (b), a court that has jurisdiction over the property and business of a domestic entity under Section 11.402(b) may appoint a receiver for the entity's property and business if:

(1)in an action by an owner or member of the domestic entity, it is established that:

(A)the entity is insolvent or in imminent danger of insolvency;

(B)the governing persons of the entity are deadlocked in the management of the entity's affairs, the owners or members of the entity are unable to break the deadlock, and irreparable injury to the entity is being suffered or is threatened because of the deadlock;

(C)the actions of the governing persons of the entity are illegal, oppressive, or fraudulent;

(D)the property of the entity is being misapplied or wasted; or

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Legislative history

Acts 2011, 82nd Leg., R.S., Ch. 139 (S.B. 748), Sec. 20, eff. September 1, 2011.