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Texas Business Organizations Code

§ 9.051 — TRANSACTING BUSINESS OR MAINTAINING COURT PROCEEDING WITHOUT REGISTRATION

BO § 9.051Title 1. GENERAL PROVISIONS · Ch. 9. FOREIGN ENTITIES · Art. B. FAILURE TO REGISTER

Statute text

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(a)On application by the attorney general, a court may enjoin a foreign filing entity or the entity's agent from transacting business in this state if:
(1)the entity is not registered in this state; or
(2)the entity's registration is obtained on the basis of a false or misleading representation.
(b)A foreign filing entity or the entity's legal representative may not maintain an action, suit, or proceeding in a court of this state, brought either directly by the entity or in the form of a derivative action in the entity's name, on a cause of action that arises out of the transaction of business in this state unless the foreign filing entity is registered in accordance with this chapter. This subsection does not affect the rights of an assignee of the foreign filing entity as:
(1)the holder in due course of a negotiable instrument; or
(2)the bona fide purchaser for value of a warehouse receipt, security, or other instrument made negotiable by law.

Legislative history

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

Source: Texas Business Organizations Code § 9.051 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.