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Texas Business Organizations Code - BUS ORG § 4.007. Liability for False Filing Instruments

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

(a) A person may recover damages, court costs, and reasonable attorney's fees if the person incurs a loss and:

(1) the loss is caused by a:

(A) forged filing instrument; or

(B) filed filing instrument that constitutes an offense under Section 4.008; or

(2) the person reasonably relies on:

(A) a false statement of material fact in a filed filing instrument; or

(B) the omission in a filed filing instrument of a material fact required by this code to be included in the instrument.

(b) A person may recover under Subsection (a) from:

(1) each person who forged the forged filing instrument or signed the filing instrument and knew when the instrument was signed of the false statement or omission;

(2) any managerial official of the entity who directed the signing and filing of the filing instrument who knew or should have known when the instrument was signed or filed of the false statement or omission; or

(3) the entity that authorizes the filing of the filing instrument.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 4.007. Liability for False Filing Instruments - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-4-007/

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