Texas House Bill HB2235

Texas 2009 - 81st Regular

• Out of House Committee: 3/31/09

Caption

Relating to business entities and associations.

Impact

If enacted, HB 2235 will modernize existing statutes by introducing clear definitions for various types of business entities, which can lead to increased compliance efficacy. The bill would also permit more flexible operational structures for entities, thus potentially lowering administrative burdens, enhancing business accessibility, and fostering economic growth. Corporations and other business associations may benefit from simplified registration processes and clearer guidelines on operational limits.

Summary

House Bill 2235 proposes amendments to the Business Organizations Code regarding the regulation and management of business entities and associations in Texas. The primary focus of the bill is to clarify and update the definitions related to business entities, including corporations, limited partnerships, and limited liability companies. It aims to streamline the process for filing and maintaining business registrations while also providing guidance on the conversion of entities between different organizational forms.

Contention

While supporters of HB 2235 advocate for its potential to simplify business operations and improve regulatory clarity, some critics express concerns that the changes might inadvertently dilute essential protections for shareholders or weaken oversight mechanisms. Notably, the discussion around the bill has highlighted fears that certain provisions may favor larger corporations at the expense of smaller businesses or natural persons engaged in business activities, thereby raising questions about equitable treatment under the revised regulatory framework.