Texas Business Organizations Code

§ 21.561 — PAYMENT OF EXPENSES

BO § 21.561Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. L. DERIVATIVE PROCEEDINGS

Statute text

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(a)In this section, "expenses" means reasonable expenses incurred by a party in a derivative proceeding, including:

(1)attorney's fees;

(2)costs in pursuing an investigation of the matter that was the subject of the derivative proceeding; or

(3)expenses for which the corporation may be required to indemnify another person.

(b)On termination of a derivative proceeding, the court may order:

(1)the corporation to pay expenses the plaintiff incurred in the proceeding if the court finds the proceeding has resulted in a substantial benefit to the corporation;

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Legislative history

Acts 2019, 86th Leg., R.S., Ch. 899 (H.B. 3603), Sec. 10, eff. September 1, 2019. Acts 2025, 89th Leg., R.S., Ch. 21 (S.B. 29), Sec. 15, eff. May 14, 2025. Acts 2025, 89th Leg., R.S., Ch. 199 (S.B. 2411), Sec. 28, eff. September 1, 2025.