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Texas Business Organizations Code - BUS ORG § 22.055. Power to Assist Employee or Officer

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

(a) A corporation may lend money to or otherwise assist an employee or officer of the corporation, but not a director, if the loan or assistance may reasonably be expected to directly or indirectly benefit the corporation.

(b) A loan made to an officer must be:

(1) made for the purpose of financing the officer's principal residence;  or

(2) set in an original principal amount that does not exceed:

(A) 100 percent of the officer's annual salary, if the loan is made before the first anniversary of the officer's employment;  or

(B) 50 percent of the officer's annual salary, if the loan is made in any subsequent year.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 22.055. Power to Assist Employee or Officer - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-22-055/

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