Texas Business Organizations Code
§ 21.958 — DERIVATIVE SUITS
BO § 21.958Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. S. PUBLIC BENEFIT CORPORATIONS
Statute text
View on source(a)In this section, "shareholder" means:
(1)shareholders of a public benefit corporation that own, individually or collectively, at least two percent of the corporation's outstanding shares; or
(2)shareholders of a public benefit corporation the shares of which are listed on a national securities exchange that own at least the lesser of:
(A)the percentage of shares described by Subdivision (1); or
(B)shares whose market value is at least $2 million.
(b)A shareholder of a public benefit corporation may maintain a derivative action on behalf of the corporation to enforce compliance with the requirements of Section 21.956(a).
Legislative history
Added by Acts 2017, 85th Leg., R.S., Ch. 776 (H.B. 3488), Sec. 4, eff. September 1, 2017.