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Texas – Business Organization Code Updated

Senate Bill 860 signed by the governor May 18 and effective September 1 updates and clarifies the Business Organization code with respect to corporations and fundamental business transactions in order to ensure Texas remains a leader in providing businesses with a clear statutory framework reflective of updated corporate practices. Among other things, the bill relates to execution of certain documents including amendments; owner liability; certification of ownership interests; notification of shareholders and dissenters rights; term or duration of shareholders’ agreements; and bylaw provisions regarding proxies.