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Texas Business Organizations Code

§ 12.257 — DISMISSAL OF ACTION

BO § 12.257Title 1. GENERAL PROVISIONS · Ch. 12. ADMINISTRATIVE POWERS · Art. D. ENFORCEMENT PROCEEDINGS

Statute text

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(a)A suit authorized by Section 12.253 or 12.258 may not be filed or, if filed, shall be dismissed if the entity, through its owners or members, reduces its indebtedness so that it is not insolvent.
(b)The respondent shall pay the costs of a dismissed suit under this section.

Legislative history

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

Source: Texas Business Organizations Code § 12.257 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.