Texas Business Organizations Code

§ 21.451 — DEFINITIONS

BO § 21.451Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. J. FUNDAMENTAL BUSINESS TRANSACTIONS

Statute text

In this subchapter:

(1)"Participating shares" means shares that entitle the holders of the shares to participate without limitation in distributions.

(2)"Sale of all or substantially all of the assets" means the sale, lease, exchange, or other disposition, other than a pledge, mortgage, deed of trust, or trust indenture unless otherwise provided by the certificate of formation, of all or substantially all of the property and assets of a domestic corporation that is not made in the usual and regular course of the corporation's business without regard to whether the disposition is made with the goodwill of the business. The term does not include a transaction that results in the corporation directly or indirectly:

(A)continuing to engage in one or more businesses; or

(B)applying a portion of the consideration received in connection with the transaction to the conduct of a business that the corporation engages in after the transaction.

(3)"Shares" includes a receipt or other instrument issued by a depository representing an interest in one or more shares or fractions of shares of a domestic or foreign corporation that are deposited with the depository.

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Legislative history

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