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Texas Business Organizations Code - BUS ORG § 21.958. Derivative Suits

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

(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).

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 21.958. Derivative Suits - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-21-958/

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