By: Harrison H.B. No. 184
A BILL TO BE ENTITLED
AN ACT
relating to the duty of the board of directors of a corporation to
maximize the value of the corporation's shares.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 21.401, Business Organizations Code, is
amended by adding Subsection (f) to read as follows:
(f) Notwithstanding any other law, in discharging the
duties of a director, the director shall act to maximize the value
of the corporation's shares. It is considered a breach of the
director's fiduciary duty if the director prioritizes another
consideration over the maximization of the value of the
corporation's shares.
SECTION 2. This Act applies only to an action taken by the
board of directors of a corporation on or after the effective date
of this Act.
SECTION 3. This Act takes effect on the 91st day after the
last day of the legislative session.