Texas House Bill HB1929

Texas 2013 - 83rd Regular

Caption

Relating to business entities and associations.

Impact

The changes proposed by HB1929 are likely to have a significant impact on business operations in Texas by modernizing and clarifying legal frameworks. By allowing for specific provisions in partnership agreements and company agreements that extend rights to non-parties, the bill enhances flexibility for business entities. Additionally, it clarifies the powers and responsibilities of series organizations, enabling these entities to have their own rights separate from their corporate parent, thereby facilitating more strategic business structuring.

Summary

House Bill 1929 aims to amend various provisions within the Texas Business Organizations Code to enhance the regulatory framework surrounding business entities and associations. The bill includes a series of amendments that clarify the rights and obligations of different business structures such as corporations, partnerships, and limited liability companies. Notably, HB1929 seeks to define how liability limits for governing persons in partnerships can be established or eliminated, thereby potentially influencing how businesses manage risk in their operations.

Contention

While the bill appears to streamline operations for businesses, it could also introduce points of contention among different stakeholders. Critics may argue that increased flexibility in liability limitations could shield governing persons from accountability, potentially leading to less transparent business practices. Proponents of the bill, on the other hand, believe that it fosters a more conducive environment for business growth in Texas by offering additional protections and clarity, ultimately encouraging more entrepreneurial ventures.