Bill

HB 3603

86(R) - 2019
House Judiciary & Civil Jurisprudence
Senate Business & Commerce
House Judiciary & Civil Jurisprudence
Senate Business & Commerce

Contact the Author

Trey Martinez Fischer

Phone:

512-463-0616

Capitol Office:

Room 3S.2

Email:

Vote Recommendation

Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral

Author(s)

Trey Martinez Fischer

Sponsor(s)

Kelly Hancock

Bill Caption

Relating to derivative proceedings on behalf of for-profit corporations, limited liability companies, and limited partnerships.

Fiscal Notes

No significant fiscal impact to the state is anticipated. 

Bill Analysis

HB 3603 would make various changes to harmonize provisions of the Business Organizations Code relating to derivative proceedings involving a for-profit corporation, a limited liability company, and a limited partnership. A derivative proceeding occurs when a shareholder brings a lawsuit on behalf of the business entity.

This bill would revise provisions, for each respective business entity, related to: a shareholder's standing to bring a derivative suit if a corporation is the converted entity and the suit is based on an act that occurred before the date of the conversion; the termination of a required waiting period between the filing of a written demand with the corporation and the institution of a derivative proceeding; the scope of discovery; and a determination made by independent and disinterested directors of how to proceed on applicable allegations, among other things.

Vote Recommendation Notes

Texas Action is neutral on HB 3603 as it does not appear to have a connection to our liberty principles. 

Contact the Author

Trey Martinez Fischer

Phone:

512-463-0616

Capitol Office:

Room 3S.2

Email: