Texas § 823.402 PROHIBITION ON VOTING CERTAIN SECURITIES.

Texas Statutes

§ 823.402 — PROHIBITION ON VOTING CERTAIN SECURITIES.

Texas § 823.402

Code INInsurance Code

This text of Texas § 823.402 (PROHIBITION ON VOTING CERTAIN SECURITIES.) 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. Insurance Code Code Ann. § 823.402 (2026).

Text

Sec. 823.402. PROHIBITION ON VOTING CERTAIN SECURITIES.

(a)A security that is the subject of an agreement or arrangement regarding an acquisition or that is acquired or to be acquired in violation of this chapter or a rule or order under this chapter may not be voted at a shareholders' meeting or counted for quorum purposes. An action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though the security was not outstanding.

(b)An action taken at a shareholders' meeting is not invalidated by the voting of a security to which Subsection (a) applies unless:

(1)the action would materially affect control of the insurer; or

(2)a court of this state invalidates the action.

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Sec. 823.402. PROHIBITION ON VOTING CERTAIN SECURITIES. (a) A security that is the subject of an agreement or arrangement regarding an acquisition or that is acquired or to be acquired in violation of this chapter or a rule or order under this chapter may not be voted at a shareholders' meeting or counted for quorum purposes. An action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though the security was not outstanding.
(b) An action taken at a shareholders' meeting is not invalidated by the voting of a security to which Subsection (a) applies unless:
(1) the action would materially affect control of the insurer; or
(2) a court of this state invalidates the action.