Texas Business Organizations Code
§ 21.455 — APPROVAL OF SALE OF ALL OR SUBSTANTIALLY ALL OF ASSETS
BO § 21.455Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. J. FUNDAMENTAL BUSINESS TRANSACTIONS
Statute text
View on source(a)Except as provided by the certificate of formation of a domestic corporation, a sale, lease, pledge, mortgage, assignment, transfer, or other conveyance of an interest in real property or other assets of the corporation does not require the approval or consent of the shareholders of the corporation unless the transaction constitutes a sale of all or substantially all of the assets of the corporation.
(b)A corporation must approve the sale of all or substantially all of its assets by complying with this section.
(c)The board of directors of the corporation shall adopt a resolution that approves the sale of all or substantially all of the assets of the corporation and:
(1)recommends that the sale of all or substantially all of the assets of the corporation be approved by the shareholders of the corporation; or
(2)directs that the sale of all or substantially all of the assets of the corporation be submitted to the shareholders for approval without recommendation if the board of directors determines for any reason not to recommend approval of the sale.
(d)The resolution proposing the sale of all or substantially all of the assets of the corporation shall be submitted to the shareholders of the corporation for approval as provided by this subchapter. The board of directors may place conditions on the submission of the proposed sale to the shareholders.
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Legislative history
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.