Texas Business Organizations Code

§ 21.956 — DUTIES OF DIRECTORS

BO § 21.956Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. S. PUBLIC BENEFIT CORPORATIONS

Statute text

(a)The board of directors of a public benefit corporation shall manage or direct the business and affairs of the corporation in a manner that balances:

(1)the pecuniary interests of the shareholders;

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

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

(b)A director of a public benefit corporation does not, by virtue of the public benefit provisions included in the certificate of formation or by virtue of the purpose and requirements of Sections 21.953(a) and (b), owe any duty to any person because of:

(1)any interest the person has in the public benefit or benefits specified in the certificate of formation; or

…

Legislative history

Added by Acts 2017, 85th Leg., R.S., Ch. 776 (H.B. 3488), Sec. 4, eff. September 1, 2017.