82R15772 CLG-D
By: Elkins H.B. No. 3244
Substitute the following for H.B. No. 3244:
By: Quintanilla C.S.H.B. No. 3244
A BILL TO BE ENTITLED
AN ACT
relating to shareholder standing to institute or maintain a
derivative proceeding after a merger.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 21.552, Business Organizations Code, is
amended to read as follows:
Sec. 21.552. STANDING TO BRING PROCEEDING. [(a)] A
shareholder may not institute or maintain a derivative proceeding
unless:
(1) the shareholder:
(A) was a shareholder of the corporation at the
time of the act or omission complained of; or
(B) became a shareholder by operation of law from
a person that was a shareholder at the time of the act or omission
complained of; and
(2) the shareholder fairly and adequately represents
the interests of the corporation in enforcing the right of the
corporation.
[(b) To the extent a shareholder of a corporation has
standing to institute or maintain a derivative proceeding on behalf
of the corporation immediately before a merger, Subchapter J or
Chapter 10 may not be construed to limit or terminate the
shareholder's standing after the merger.]
SECTION 2. This Act takes effect September 1, 2011.