Texas § 21.556 DISCOVERY.

Texas Statutes

§ 21.556 — DISCOVERY.

Texas § 21.556

Code BOBusiness Organizations Code

This text of Texas § 21.556 (DISCOVERY.) 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. § 21.556 (2026).

Text

Sec. 21.556. DISCOVERY.

(a)If a corporation proposes to dismiss a derivative proceeding under Section 21.558 , discovery by a shareholder after the filing of the derivative proceeding in accordance with this subchapter shall be limited to:

(1)facts relating to whether the person or persons described by Section 21.554 are independent and disinterested;

(2)the good faith of the inquiry and review by the person or group; and

(3)the reasonableness of the procedures followed by the person or group in conducting the review.

(b)Discovery described by Subsection (a) may not be expanded to include a fact or substantive matter regarding the act, omission, or other matter that is the subject matter of the derivative proceeding but the scope of discovery shall not be so limited if the court deter

Free access — add to your briefcase to read the full text and ask questions with AI

Sec. 21.556. DISCOVERY. (a) If a corporation proposes to dismiss a derivative proceeding under Section 21.558 , discovery by a shareholder after the filing of the derivative proceeding in accordance with this subchapter shall be limited to:
(1) facts relating to whether the person or persons described by Section 21.554 are independent and disinterested;
(2) the good faith of the inquiry and review by the person or group; and
(3) the reasonableness of the procedures followed by the person or group in conducting the review.
(b) Discovery described by Subsection (a) may not be expanded to include a fact or substantive matter regarding the act, omission, or other matter that is the subject matter of the derivative proceeding but the scope of discovery shall not be so limited if the court determines after notice and hearing that a good faith review of the allegations has not been made by an independent and disinterested person or group in accordance with Sections 21.554 and 21.558 .

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. 6, eff. September 1, 2019.