Texas Business Organizations Code

§ 21.502 — CERTAIN PROCEDURES RELATING TO WINDING UP

BO § 21.502Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. K. WINDING UP AND TERMINATION

Statute text

To approve a voluntary winding up, a reinstatement, a cancellation of an event requiring winding up, or a revocation of a voluntary decision to wind up, a corporation must follow one of the following procedures:

(1)all shareholders of the corporation must consent in writing to the winding up, the reinstatement, the cancellation of an event requiring winding up, or the revocation of a voluntary decision to wind up the corporation;

(2)if the corporation has not commenced business and has not issued any shares, a majority of the organizers or the board of directors of the corporation must adopt a resolution to wind up, to reinstate, to cancel an event requiring winding up, or to revoke a voluntary decision to wind up; or (3)(A) the board of directors of the corporation must adopt a resolution:

(i)recommending the winding up, reinstatement, cancellation of an event requiring winding up, or revocation of a voluntary decision to wind up the corporation; and

(ii)directing that the winding up, reinstatement, cancellation of an event requiring winding up, or revocation of a voluntary decision to wind up the corporation be submitted to the shareholders for approval at an annual or special meeting of shareholders; and

(B)the shareholders must approve the action described by Paragraph (A) in accordance with Section 21.503.

Legislative history

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