Texas § 21.553 DEMAND.

Texas Statutes

§ 21.553 — DEMAND.

Texas § 21.553

Code BOBusiness Organizations Code

This text of Texas § 21.553 (DEMAND.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Business Organizations Code Code Ann. § 21.553 (2026).

Text

Sec. 21.553. DEMAND.

(a)A shareholder may not institute a derivative proceeding until the 91st day after the date a written demand is filed with the corporation stating with particularity the act, omission, or other matter that is the subject of the claim or challenge and requesting that the corporation take suitable action.

(b)The waiting period required by Subsection (a) before a derivative proceeding may be instituted is not required or, if applicable, shall terminate if:

(1)the shareholder has been notified that the demand has been rejected by the corporation;

(2)the corporation is suffering irreparable injury; or

(3)irreparable injury to the corporation would result by waiting for the expiration of the 90-day period.

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Sec. 21.553. DEMAND. (a) A shareholder may not institute a derivative proceeding until the 91st day after the date a written demand is filed with the corporation stating with particularity the act, omission, or other matter that is the subject of the claim or challenge and requesting that the corporation take suitable action.
(b) The waiting period required by Subsection (a) before a derivative proceeding may be instituted is not required or, if applicable, shall terminate if:
(1) the shareholder has been notified that the demand has been rejected by the corporation;
(2) the corporation is suffering irreparable injury; or
(3) irreparable injury to the corporation would result by waiting for the expiration of the 90-day period.

Legislative History

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2019, 86th Leg., R.S., Ch. 899 (H.B. 3603 ), Sec. 3, eff. September 1, 2019.