Texas Business Organizations Code
§ 21.418 — CONTRACTS OR TRANSACTIONS INVOLVING INTERESTED DIRECTORS AND OFFICERS
BO § 21.418Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. I. BOARD OF DIRECTORS
Statute text
View on source(a)This section applies to a contract or transaction between a corporation and:
(1)one or more directors or officers, or one or more affiliates or associates of one or more directors or officers, of the corporation; or
(2)an entity or other organization in which one or more directors or officers, or one or more affiliates or associates of one or more directors or officers, of the corporation:
(A)is a managerial official; or
(B)has a financial interest.
(b)An otherwise valid and enforceable contract or transaction described by Subsection (a) is valid and enforceable, and is not void or voidable, notwithstanding any relationship or interest described by Subsection (a), if any one of the following conditions is satisfied:
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Legislative history
Acts 2009, 81st Leg., R.S., Ch. 84 (S.B. 1442), Sec. 37, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 139 (S.B. 748), Sec. 28, eff. September 1, 2011. Acts 2025, 89th Leg., R.S., Ch. 21 (S.B. 29), Sec. 10, eff. May 14, 2025.