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Texas Business Organizations Code - BUS ORG § 21.553. Demand

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A shareholder may not institute a derivative proceeding until the 91st day after the date a written demand is filed with the corporation stating with particularity the act, omission, or other matter that is the subject of the claim or challenge and requesting that the corporation take suitable action.

(b) The waiting period required by Subsection (a) before a derivative proceeding may be instituted is not required or, if applicable, shall terminate if:

(1) the shareholder has been notified that the demand has been rejected by the corporation;

(2) the corporation is suffering irreparable injury;  or

(3) irreparable injury to the corporation would result by waiting for the expiration of the 90-day period.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 21.553. Demand - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-21-553/

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