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Current as of January 01, 2024 | Updated by Findlaw Staff
(a) Except under a written contract approved by the corporation's board of directors, a corporation may not pay compensation, including a commission or fee, or another thing of value to a broker, agent, or other third party who:
(1) is involved in business recruitment or development; and
(2) is not an employee of the corporation.
(b) A corporation that violates Subsection (a) is liable to this state for a civil penalty in an amount not to exceed $10,000.
(c) The attorney general may bring an action to recover the civil penalty in a district court in Travis County or the county in which the violation occurred.
Cite this article: FindLaw.com - Texas Local Government Code - LOC GOV'T § 502.051. Written Contract Required for Business Recruitment or Development - last updated January 01, 2024 | https://codes.findlaw.com/tx/local-government-code/loc-gov-t-sect-502-051/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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