Texas Business Organizations Code

§ 21.953 — PURPOSE OF PUBLIC BENEFIT CORPORATION; NAME OF CORPORATION

BO § 21.953Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. S. PUBLIC BENEFIT CORPORATIONS

Statute text

(a)A public benefit corporation is a domestic for-profit corporation that is intended to produce a public benefit or benefits and to operate in a responsible and sustainable manner.

(b)To accomplish the purpose of the corporation described by Subsection (a), a public benefit corporation shall be managed in a manner that balances:

(1)the shareholders' pecuniary interests;

(2)the best interests of those persons materially affected by the corporation's conduct; and

(3)the public benefit or benefits specified in the corporation's certificate of formation.

(c)The name of the public benefit corporation specified in its certificate of formation may contain the words "public benefit corporation," the abbreviation "P.B.C.," or the designation "PBC." If the name does not contain those words or that abbreviation or designation, before the issuance of unissued shares or the disposition of treasury shares and except as provided by Subsection (d), notice that the corporation is a public benefit corporation shall be given to any person:

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Legislative history

Acts 2019, 86th Leg., R.S., Ch. 665 (S.B. 1971), Sec. 14, eff. September 1, 2019.