82R3080 CLG-F
	By: Giddings	H.B. No. 1873

	A BILL TO BE ENTITLED
	AN ACT
	relating to business entities and associations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1.002, Business Organizations Code, is
	amended by adding Subdivisions (55-a), (69-c), (69-d), and (69-e)
	and amending Subdivision (69-b) to read as follows:
	(55-a)  "National securities exchange" means an
	exchange registered as a national securities exchange under Section
	6, Securities Exchange Act of 1934 (15 U.S.C. Section 78f).
	(69-b)  "Person" means an individual or a corporation,
	partnership, limited liability company, business trust, trust,
	association, or other organization, estate, government or
	governmental subdivision or agency, or other legal entity [has the
	meaning assigned by Section 311.005, Government Code].
	(69-c)  "Plan of conversion" means a document that
	conforms with the requirements of Section 10.103.
	(69-d)  "Plan of exchange" means a document that
	conforms with the requirements of Section 10.052.
	(69-e)  "Plan of merger" means a document that conforms
	with the requirements of Sections 10.002 and 10.003.
	SECTION 2.  Section 6.101(b), Business Organizations Code,
	is amended to read as follows:
	(b)  Subject to this code and the governing documents of a
	domestic entity, the governing authority of the entity, in advance,
	may provide a record date for determining the owners or members of
	the entity, except that the date may not be earlier than the 60th
	day before the date the action requiring the determination of
	owners or members is originally to be taken.
	SECTION 3.  Section 6.205(a), Business Organizations Code,
	is amended to read as follows:
	(a)  Any photographic, photostatic, facsimile, or similarly
	reliable reproduction of a consent in writing signed by an owner,
	member, or governing person of a filing entity may be substituted or
	used instead of the original writing for any purpose for which the
	original writing could be used[, if the reproduction is a complete
	reproduction of the entire original writing].
	SECTION 4.  Sections 8.001(1) and (2), Business
	Organizations Code, are amended to read as follows:
	(1)  "Delegate" means a person who, while serving as a
	governing person of an enterprise, is or was serving [as a
	representative of the enterprise] at the request of that enterprise
	as a representative of [at] another enterprise, [or] another
	organization, or [to] an employee benefit plan.  A person is a
	delegate to an employee benefit plan if the performance of the
	person's official duties to the enterprise also imposes duties on
	or otherwise involves service by the person to the plan or
	participants in or beneficiaries of the plan.
	(2)  "Enterprise" means a domestic entity or an
	organization subject to this chapter.  The term includes [,
	including] a predecessor enterprise [domestic entity or
	organization].
	SECTION 5.  Section 8.103(d), Business Organizations Code,
	is amended to read as follows:
	(d)  With respect to a limited partnership, a vote of a
	majority-in-interest of the limited partners in a vote that
	excludes the interest held by each general partner who is not
	disinterested and independent constitutes a determination under
	Subsection (a)(4). For purposes of this subsection,
	"majority-in-interest" means, with respect to limited partners,
	limited partners who own more than 50 percent of the current
	percentage or other interest in the profits of the partnership that
	is owned by all of the limited partners.
	SECTION 6.  Section 8.104(d), Business Organizations Code,
	is amended to read as follows:
	(d)  With respect to a limited partnership, a vote of a
	majority-in-interest of the limited partners in a vote that
	excludes the interest held by each general partner who is not
	disinterested and independent constitutes an authorization under
	Subsection (b). For purposes of this subsection,
	"majority-in-interest" means, with respect to limited partners,
	limited partners who own more than 50 percent of the current
	percentage or other interest in the profits of the partnership that
	is owned by all of the limited partners.
	SECTION 7.  Section 8.105(d), Business Organizations Code,
	is amended to read as follows:
	(d)  Notwithstanding any authorization or determination
	specified in this chapter, an enterprise may pay or reimburse, in
	advance of the final disposition of a proceeding and on terms the
	enterprise considers appropriate, reasonable expenses incurred by:
	(1)  a former governing person [managerial official] or
	delegate who was, is, or is threatened to be made a respondent in
	the proceeding; [,] or
	(2)  a present or former employee, [or] agent, or
	officer who is not a governing person of the enterprise and who was,
	is, or is threatened to be made a respondent in the proceeding.
	SECTION 8.  Section 8.151, Business Organizations Code, is
	amended by adding Subsection (c-1) to read as follows:
	(c-1)  With respect to a limited partnership, a vote of a
	majority-in-interest of the limited partners constitutes approval
	of the owners for purposes of Subsection (c).
	SECTION 9.  Section 9.007(b), Business Organizations Code,
	is amended to read as follows:
	(b)  The application for registration must state:
	(1)  the partnership's name;
	(2)  the federal taxpayer [tax] identification number
	of the partnership;
	(3)  the partnership's jurisdiction of formation;
	(4)  the date of initial registration as a limited
	liability partnership under the laws of the jurisdiction [state] of
	formation;
	(5)  the date the foreign entity began or will begin to
	transact business in this state;
	(6)  that the partnership exists as a valid limited
	liability partnership under the laws of the jurisdiction [state] of
	its formation;
	(7)  the number of partners at the date of the
	statement;
	(8)  each business or activity that the partnership
	proposes to pursue in this state, which may be stated to be any
	lawful business or activity under the laws of this state;
	(9)  the address of the principal office of the
	partnership;
	(10)  the address of the initial registered office and
	the name and address of the initial registered agent for service of
	process required to be maintained under Section 152.904; and
	(11)  that the secretary of state is appointed the
	agent of the partnership for service of process under the same
	circumstances as set forth by Section 5.251 for a foreign filing
	entity.
	SECTION 10.  Section 10.002, Business Organizations Code, is
	amended to read as follows:
	Sec. 10.002.  PLAN OF MERGER: REQUIRED PROVISIONS. (a) A
	plan of merger must be in writing and must include:
	(1)  the name of each organization that is a party to
	the merger;
	(2)  the name of each organization that will survive
	the merger;
	(3)  the name of each new organization that is to be
	created by the plan of merger;
	(4)  a description of the organizational form of each
	organization that is a party to the merger or that is to be created
	by the plan of merger and its jurisdiction of formation;
	(5)  the manner and basis of converting or exchanging
	any of the ownership or membership interests of each organization
	that is a party to the merger into:
	(A)  ownership interests, membership interests,
	obligations, rights to purchase securities, or other securities of
	one or more of the surviving or new organizations;
	(B)  cash;
	(C)  other property, including ownership
	interests, membership interests, obligations, rights to purchase
	securities, or other securities of any other person or entity; or
	(D)  any combination of the items described by
	Paragraphs (A)-(C);
	(6)  the identification of any of the ownership or
	membership interests of an organization that is a party to the
	merger that are to be canceled rather than converted or exchanged;
	(7)  the certificate of formation of each new domestic
	filing entity to be created by the plan of merger;
	(8) [(7)]  the governing documents of each new domestic
	nonfiling entity to be created by the plan of merger; and
	(9) [(8)]  the governing documents of each non-code
	organization that:
	(A)  is to survive the merger or to be created by
	the plan of merger; and
	(B)  is an entity that is not:
	(i)  organized under the laws of any state or
	the United States; or
	(ii)  required to file its certificate of
	formation or similar document under which the entity is organized
	with the appropriate governmental authority.
	(b)  An item required by Subsections (a)(7)-(9) [(a)(6)-(8)]
	may be included in the plan of merger by an attachment or exhibit to
	the plan.
	(c)  If the plan of merger provides for a manner and basis of
	converting or exchanging an ownership or membership interest that
	may be converted or exchanged in a manner or basis different than
	any other ownership or membership interest of the same class or
	series of the ownership or membership interest, the manner and
	basis of conversion or exchange must be included in the plan of
	merger in the same manner as provided by Subsection (a)(5).
	SECTION 11.  Section 10.008(a), Business Organizations
	Code, is amended to read as follows:
	(a)  When a merger takes effect:
	(1)  the separate existence of each domestic entity
	that is a party to the merger, other than a surviving or new
	domestic entity, ceases;
	(2)  all rights, title, and interests to all real
	estate and other property owned by each organization that is a party
	to the merger is allocated to and vested, subject to any existing
	liens or other encumbrances on the property, in one or more of the
	surviving or new organizations as provided in the plan of merger
	without:
	(A)  reversion or impairment;
	(B)  any further act or deed; or
	(C)  any transfer or assignment having occurred;
	(3)  all liabilities and obligations of each
	organization that is a party to the merger are allocated to one or
	more of the surviving or new organizations in the manner provided by
	the plan of merger;
	(4)  each surviving or new domestic organization to
	which a liability or obligation is allocated under the plan of
	merger is the primary obligor for the liability or obligation, and,
	except as otherwise provided by the plan of merger or by law or
	contract, no other party to the merger, other than a surviving
	domestic entity or non-code organization liable or otherwise
	obligated at the time of the merger, and no other new domestic
	entity or non-code organization created under the plan of merger is
	liable for the debt or other obligation;
	(5)  any proceeding pending by or against any domestic
	entity or by or against any non-code organization that is a party to
	the merger may be continued as if the merger did not occur, or the
	surviving or new domestic entity or entities or the surviving or new
	non-code organization or non-code organizations to which the
	liability, obligation, asset, or right associated with that
	proceeding is allocated to and vested in under the plan of merger
	may be substituted in the proceeding;
	(6)  the governing documents of each surviving domestic
	entity are amended to the extent provided by the plan of merger;
	(7)  each new filing entity whose certificate of
	formation is included in the plan of merger under this chapter, on
	meeting any additional requirements, if any, of this code for its
	formation, is formed as a domestic entity under this code as
	provided by the plan of merger;
	(8)  the ownership or membership interests of each
	organization that is a party to the merger and that are to be
	converted or exchanged, in whole or part, into ownership or
	membership interests, obligations, rights to purchase securities,
	or other securities of one or more of the surviving or new
	organizations, into cash or other property, including ownership or
	membership interests, obligations, rights to purchase securities,
	or other securities of any organization, or into any combination of
	these, or that are to be canceled, are converted, [and] exchanged,
	or canceled as provided in the plan of merger, and the former owners
	or members who held ownership or membership interests of each
	domestic entity that is a party to the merger are entitled only to
	the rights provided by the plan of merger or, if applicable, any
	rights to receive the fair value for the ownership interests
	provided under Subchapter H; and
	(9)  notwithstanding Subdivision (4), the surviving or
	new organization named in the plan of merger as primarily obligated
	to pay the fair value of an ownership or membership interest under
	Section 10.003(2) is the primary obligor for that payment and all
	other surviving or new organizations are secondarily liable for
	that payment.
	SECTION 12.  Section 10.052(a), Business Organizations
	Code, is amended to read as follows:
	(a)  A plan of exchange must be in writing and must include:
	(1)  the name of each domestic entity the ownership or
	membership interests of which are to be acquired;
	(2)  the name of each acquiring organization;
	(3)  if there is more than one acquiring organization,
	the ownership or membership interests to be acquired by each
	organization;
	(4)  the terms and conditions of the exchange; and
	(5)  the manner and basis of exchanging the ownership
	or membership interests to be acquired for:
	(A)  ownership or membership interests,
	obligations, rights to purchase securities, or other securities of
	one or more of the acquiring organizations that is a party to the
	plan of exchange;
	(B)  cash;
	(C)  other property, including ownership or
	membership interests, obligations, rights to purchase securities,
	or other securities of any other person or entity; or
	(D)  any combination of those items.
	SECTION 13.  Section 10.103(a), Business Organizations
	Code, is amended to read as follows:
	(a)  A plan of conversion must be in writing and must
	include:
	(1)  the name of the converting entity;
	(2)  the name of the converted entity;
	(3)  a statement that the converting entity is
	continuing its existence in the organizational form of the
	converted entity;
	(4)  a statement of the type of entity that the
	converted entity is to be and the converted entity's jurisdiction
	of formation;
	(5)  if Sections 10.1025 and 10.109 do not apply, the
	manner and basis of converting the ownership or membership
	interests of the converting entity into ownership or membership
	interests of the converted entity;
	(6)  any certificate of formation required to be filed
	under this code if the converted entity is a filing entity;
	(7)  the certificate of formation or similar
	organizational document of the converted entity if the converted
	entity is not a filing entity; and
	(8)  if Sections 10.1025 and 10.109 apply, a statement
	that the converting entity is electing to continue its existence in
	its current organizational form and jurisdiction of formation after
	the conversion takes effect.
	SECTION 14.  Section 10.354(b), Business Organizations
	Code, is amended to read as follows:
	(b)  Notwithstanding Subsection (a), subject to Subsection
	(c), an owner may not dissent from a plan of merger or conversion in
	which there is a single surviving or new domestic entity or non-code
	organization, or from a plan of exchange, if:
	(1)  the ownership interest, or a depository receipt in
	respect of the ownership interest, held by the owner is part of a
	class or series of ownership interests, or depository receipts in
	respect of ownership interests, that are, on the record date set for
	purposes of determining which owners are entitled to vote on the
	plan of merger, conversion, or exchange, as appropriate:
	(A)  listed on a national securities exchange [or
	a similar system]; or
	(B)  [listed on the Nasdaq Stock Market or a
	successor quotation system;
	[(C)     designated as a national market security on
	an interdealer quotation system by the National Association of
	Securities Dealers, Inc., or a successor system; or
	[(D)]  held of record by at least 2,000 owners;
	(2)  the owner is not required by the terms of the plan
	of merger, conversion, or exchange, as appropriate, to accept for
	the owner's ownership interest any consideration that is different
	from the consideration to be provided to any other holder of an
	ownership interest of the same class or series as the ownership
	interest held by the owner, other than cash instead of fractional
	shares or interests the owner would otherwise be entitled to
	receive; and
	(3)  the owner is not required by the terms of the plan
	of merger, conversion, or exchange, as appropriate, to accept for
	the owner's ownership interest any consideration other than:
	(A)  ownership interests, or depository receipts
	in respect of ownership interests, of a domestic entity or non-code
	organization of the same general organizational type that,
	immediately after the effective date of the merger, conversion, or
	exchange, as appropriate, will be part of a class or series of
	ownership interests, or depository receipts in respect of ownership
	interests, that are:
	(i)  listed on a national securities
	exchange or authorized for listing on the exchange on official
	notice of issuance; or
	(ii)  [approved for quotation as a national
	market security on an interdealer quotation system by the National
	Association of Securities Dealers, Inc., or a successor entity; or
	[(iii)]  held of record by at least 2,000
	owners;
	(B)  cash instead of fractional ownership
	interests the owner would otherwise be entitled to receive; or
	(C)  any combination of the ownership interests
	and cash described by Paragraphs (A) and (B).
	SECTION 15.  Sections 10.355(c) and (e), Business
	Organizations Code, are amended to read as follows:
	(c)  A notice required to be provided under Subsection (a) or
	(b) must:
	(1)  be accompanied by a copy of this subchapter; and
	(2)  advise the owner of the location of the
	responsible organization's principal executive offices to which a
	notice required under Section 10.356(b)(1) or (3) [10.356(b)(2)]
	may be provided.
	(e)  Not later than the 10th day after the date an action
	described by Subsection (a)(1) takes effect, the responsible
	organization shall give notice that the action has been effected to
	each owner who voted against the action and sent notice under
	Section 10.356(b)(1) [10.356(b)(2)].
	SECTION 16.  Sections 10.356(b), (c), and (d), Business
	Organizations Code, are amended to read as follows:
	(b)  To perfect the owner's rights of dissent and appraisal
	under Section 10.354, an owner:
	(1)  if the proposed action is to be submitted to a vote
	of the owners at a meeting, must give to the domestic entity a
	written notice of objection to the action that:
	(A)  is addressed to the entity's president and
	secretary;
	(B)  states that the owner's right to dissent will
	be exercised if the action takes effect;
	(C)  provides an address to which notice of
	effectiveness of the action should be delivered or mailed; and
	(D)  is delivered to the entity's principal
	executive offices before the meeting;
	(2)  with respect to the ownership interest for which
	the rights of dissent and appraisal are sought:
	(A)  must vote against the action if the owner is
	entitled to vote on the action and the action is approved at a
	meeting of the owners; and
	(B)  may not consent to the action if the action is
	approved by written consent; and
	(3) [(2)]  must give to the responsible organization a
	demand in writing [notice dissenting to the action] that:
	(A)  is addressed to the president and secretary
	of the responsible organization;
	(B)  demands payment of the fair value of the
	ownership interests for which the rights of dissent and appraisal
	are sought;
	(C)  provides to the responsible organization an
	address to which a notice relating to the dissent and appraisal
	procedures under this subchapter may be sent;
	(D)  states the number and class of the ownership
	interests of the domestic entity owned by the owner and the fair
	value of the ownership interests as estimated by the owner; and
	(E)  is delivered to the responsible organization
	at its principal executive offices at the following time:
	(i)  not later than the 20th day after the
	date the responsible organization sends to the owner the notice
	required by Section 10.355(e) that the action has taken effect
	[before the action is considered for approval], if the action was
	approved by [is to be submitted to] a vote of the owners at a
	meeting;
	(ii)  not later than the 20th day after the
	date the responsible organization sends to the owner the [a] notice
	required by Section 10.355(d)(2) that the action has taken effect
	[was approved by the requisite vote of the owners], if the action
	was approved by [is to be undertaken on] the written consent of the
	owners; or
	(iii)  not later than the 20th day after the
	date the responsible organization sends to the owner a notice that
	the merger was effected, if the action is a merger effected under
	Section 10.006.
	(c)  An owner who does not make a demand within the period
	required by Subsection (b)(3)(E) or, if Subsection (b)(1) is
	applicable, does not give the notice of objection before the
	meeting of the owners [(b)(2)(E)] is bound by the action and is not
	entitled to exercise the rights of dissent and appraisal under
	Section 10.354.
	(d)  Not later than the 20th day after the date an owner makes
	a demand under Subsection (b)(3) [this section], the owner must
	submit to the responsible organization any certificates
	representing the ownership interest to which the demand relates for
	purposes of making a notation on the certificates that a demand for
	the payment of the fair value of an ownership interest has been made
	under this section. An owner's failure to submit the certificates
	within the required period has the effect of terminating, at the
	option of the responsible organization, the owner's rights to
	dissent and appraisal under Section 10.354 unless a court, for good
	cause shown, directs otherwise.
	SECTION 17.  Sections 10.358(a), (d), and (e), Business
	Organizations Code, are amended to read as follows:
	(a)  Not later than the 20th day after the date a responsible
	organization receives a demand for payment made by a dissenting
	owner in accordance with Section 10.356(b)(3) [10.356], the
	responsible organization shall respond to the dissenting owner in
	writing by:
	(1)  accepting the amount claimed in the demand as the
	fair value of the ownership interests specified in the notice; or
	(2)  rejecting the demand and including in the response
	the requirements prescribed by Subsection (c).
	(d)  If the dissenting owner decides to accept the offer made
	by the responsible organization under Subsection (c)(2), the owner
	must provide to the responsible organization notice of the
	acceptance of the offer not later than the 90th day after the date
	the action that is the subject of the demand was effected.  [An
	offer made under Subsection (c)(2) must remain open for a period of
	at least 60 days from the date the offer is first delivered to the
	dissenting owner.]
	(e)  If, not later than the 90th day after the date the action
	that is the subject of the demand was effected, a dissenting owner
	accepts an offer made by a responsible organization under
	Subsection (c)(2) or [if] a dissenting owner and a responsible
	organization reach an agreement on the fair value of the ownership
	interests, the responsible organization shall pay the agreed amount
	not later than the 120th [60th] day after the date the action that
	is the subject of the demand was effected [the offer is accepted or
	the agreement is reached, as appropriate], if the dissenting owner
	delivers to the responsible organization:
	(1)  endorsed certificates representing the ownership
	interests if the ownership interests are certificated; or
	(2)  signed assignments of the ownership interests if
	the ownership interests are uncertificated.
	SECTION 18.  Section 11.057, Business Organizations Code, is
	amended by adding Subsection (f) to read as follows:
	(f)  "Majority-in-interest" means, with respect to all or a
	specified group of partners, partners who own more than 50 percent
	of the current percentage or other interest in the profits of the
	partnership that is owned by all of the partners or by the partners
	in the specified group, as appropriate.
	SECTION 19.  Section 11.402, Business Organizations Code, is
	amended to read as follows:
	Sec. 11.402.  JURISDICTION TO APPOINT RECEIVER. (a) A court
	that has subject matter jurisdiction over specific property of a
	domestic or foreign entity that is located in this state and is
	involved in litigation has jurisdiction to appoint a receiver for
	that property as provided by Section 11.403.
	(b)  A district court in the county in which the registered
	office or principal place of business of a domestic entity is
	located has jurisdiction to:
	(1)  appoint a receiver for the property and business
	of a domestic entity for the purpose of rehabilitating the entity as
	provided by Section 11.404; or
	(2)  order the liquidation of the property and business
	of a domestic entity and appoint a receiver to effect that
	liquidation as provided by Section 11.405.
	SECTION 20.  Section 11.404(b), Business Organizations
	Code, is amended to read as follows:
	(b)  A court may appoint a receiver under Subsection (a) only
	if:
	(1)  circumstances exist that are considered by the
	court to necessitate the appointment of a receiver to conserve the
	property and business of the domestic entity and avoid damage to
	interested parties;
	(2)  all other requirements of law are complied with;
	and
	(3)  the court determines that all other available
	legal and equitable remedies, including the appointment of a
	receiver for specific property of the domestic entity under Section
	11.402(a) [11.402], are inadequate.
	SECTION 21.  Section 21.109(a), Business Organizations
	Code, is amended to read as follows:
	(a)  A shareholders' agreement authorized by this subchapter
	ceases to be effective when shares of the corporation are:
	(1)  listed on a national securities exchange [or
	similar system]; or
	(2)  [quoted on an interdealer quotation system of a
	national securities association or successor system; or
	[(3)]  regularly traded in a market maintained by one
	or more members of a national or affiliated securities association.
	SECTION 22.  Subchapter C, Chapter 21, Business
	Organizations Code, is amended by adding Section 21.110 to read as
	follows:
	Sec. 21.110.  OTHER SHAREHOLDER AGREEMENTS PERMITTED. This
	subchapter does not prohibit or impair any agreement between two or
	more shareholders, or between the corporation and one or more of the
	corporation's shareholders, permitted by Title 1, this chapter, or
	other law.
	SECTION 23.  Section 21.203, Business Organizations Code, is
	amended by adding Subsection (c) to read as follows:
	(c)  This section and Sections 21.204 through 21.208 do not
	invalidate or impair a corporation's right or power to grant an
	enforceable nonstatutory preemptive right in:
	(1)  a contract between the corporation and a
	shareholder or other person; or
	(2)  the governing documents of the corporation.
	SECTION 24.  Section 21.206(a), Business Organizations
	Code, is amended to read as follows:
	(a)  An action brought against a corporation, the board of
	directors or an officer, shareholder, or agent of the corporation,
	or an owner of a beneficial interest in shares of the corporation
	for the violation of a preemptive right of a shareholder under
	Sections 21.203 and 21.204 must be brought not later than the
	earlier of:
	(1)  the first anniversary of the date written notice
	is given to each shareholder whose preemptive right was violated;
	or
	(2)  the fourth anniversary of the latest of:
	(A)  the date the corporation issued the shares,
	securities, or rights;
	(B)  the date the corporation sold the shares,
	securities, or rights; or
	(C)  the date the corporation otherwise
	distributed the shares, securities, or rights.
	SECTION 25.  Section 21.222(b), Business Organizations
	Code, is amended to read as follows:
	(b)  It is a defense to an action brought under this section
	that the person suing:
	(1)  has, within the two years preceding the date the
	action is brought, sold or offered for sale a list of shareholders
	or of holders of voting trust certificates [in consideration] for
	shares of the corporation or any other corporation;
	(2)  has aided or abetted a person in procuring a list
	of shareholders or of holders of voting trust certificates for the
	purpose described by Subdivision (1);
	(3)  has improperly used information obtained through a
	prior examination of the books and account records, minutes, or
	share transfer records of the corporation or any other corporation;
	or
	(4)  was not acting in good faith or for a proper
	purpose in making the person's request for examination.
	SECTION 26.  Section 21.357, Business Organizations Code, is
	amended to read as follows:
	Sec. 21.357.  RECORD DATE FOR PURPOSE OF SHAREHOLDERS'
	MEETING [OTHER THAN WRITTEN CONSENT TO ACTION]. The record date for
	the purpose of determining shareholders entitled to notice of or to
	vote at a shareholders' meeting or an adjournment of the meeting, as
	provided by the directors in accordance with Section 6.101, must be
	at least 10 days before the date of the shareholders' meeting [on
	which the particular action requiring the determination of
	shareholders is to be taken].
	SECTION 27.  Section 21.415(a), Business Organizations
	Code, is amended to read as follows:
	(a)  The act of a majority of the directors present at a
	meeting at which a quorum is present at the time of the act is
	considered the act of the board of directors of a corporation,
	unless the act of a greater number is required by the certificate of
	formation or bylaws of the corporation or by this code.
	SECTION 28.  Section 21.418, Business Organizations Code, is
	amended by amending Subsections (a) and (b) and adding Subsections
	(d) and (e) to read as follows:
	(a)  This section applies only to a contract or transaction
	between a corporation and:
	(1)  one or more [of the corporation's] directors or
	officers, or one or more affiliates or associates of one or more
	directors or officers, of the corporation; or
	(2)  an entity or other organization in which one or
	more [of the corporation's] directors or officers, or one or more
	affiliates or associates of one or more directors or officers, of
	the corporation:
	(A)  is a managerial official; or
	(B)  has a financial interest.
	(b)  An otherwise valid and enforceable contract or
	transaction described by Subsection (a) is valid and enforceable,
	and may not be void or voidable, notwithstanding any relationship
	or interest described by Subsection (a), if any one of the following
	conditions is satisfied [notwithstanding that the director or
	officer having the relationship or interest described by Subsection
	(a) is present at or participates in the meeting of the board of
	directors, or of a committee of the board that authorizes the
	contract or transaction, or votes or signs, in the person's
	capacity as a director or committee member, a unanimous written
	consent of directors or committee members to authorize the contract
	or transaction, if]:
	(1)  the material facts as to the relationship or
	interest described by Subsection (a) and as to the contract or
	transaction are disclosed to or known by:
	(A)  the corporation's board of directors or a
	committee of the board of directors, and the board of directors or
	committee in good faith authorizes the contract or transaction by
	the approval of the majority of the disinterested directors or
	committee members, regardless of whether the disinterested
	directors or committee members constitute a quorum; or
	(B)  the shareholders entitled to vote on the
	authorization of the contract or transaction, and the contract or
	transaction is specifically approved in good faith by a vote of the
	shareholders; or
	(2)  the contract or transaction is fair to the
	corporation when the contract or transaction is authorized,
	approved, or ratified by the board of directors, a committee of the
	board of directors, or the shareholders.
	(d)  A person who has the relationship or interest described
	by Subsection (a) may:
	(1)  be present at or participate in and, if the person
	is a director or committee member, may vote at a meeting of the
	board of directors or of a committee of the board that authorizes
	the contract or transaction; or
	(2)  sign, in the person's capacity as a director or
	committee member, a unanimous written consent of the directors or
	committee members to authorize the contract or transaction.
	(e)  If at least one of the conditions of Subsection (b) is
	satisfied, neither the corporation nor any of the corporation's
	shareholders will have a cause of action against any of the persons
	described by Subsection (a) for breach of duty with respect to the
	making, authorization, or performance of the contract or
	transaction because the person had the relationship or interest
	described by Subsection (a) or took any of the actions authorized by
	Subsection (d).
	SECTION 29.  Section 21.453, Business Organizations Code, is
	amended by adding Subsections (f) and (g) to read as follows:
	(f)  If after the adoption of a resolution under Subsection
	(b) the corporation's board of directors determines that the plan
	of conversion is not advisable, the board may submit the plan of
	conversion to the corporation's shareholders with a recommendation
	that the shareholders not approve the plan of conversion.
	(g)  A corporation's plan of conversion may include a
	provision requiring that the plan of conversion be submitted to the
	corporation's shareholders, regardless of whether the board of
	directors determines, after adopting a resolution or making a
	determination under this section, that the plan of conversion is
	not advisable and recommends that the shareholders not approve the
	plan of conversion.
	SECTION 30.  Section 21.601(1), Business Organizations
	Code, is amended to read as follows:
	(1)  "Issuing public corporation" means a domestic
	corporation that has:
	(A)  100 or more shareholders of record as shown
	by the share transfer records of the corporation;
	(B)  a class or series of the corporation's voting
	shares registered under the Securities Exchange Act of 1934 (15
	U.S.C. Section 77b et seq.), as amended; or
	(C)  a class or series of the corporation's voting
	shares qualified for trading on [in] a national securities exchange
	[market system].
	SECTION 31.  Section 21.603, Business Organizations Code, is
	amended to read as follows:
	Sec. 21.603.  BENEFICIAL OWNER OF SHARES OR OTHER [SIMILAR]
	SECURITIES. (a) For purposes of this subchapter [chapter], a
	person is a beneficial owner of shares or other [similar]
	securities if the person individually, or through an affiliate or
	associate, [beneficially owns,] directly or indirectly
	beneficially owns the shares or other securities or has the right [,
	shares or similar securities.
	[(b)     A beneficial owner of shares or similar securities is
	entitled, individually or through an affiliate or associate,] to:
	(1)  acquire the shares or other [similar] securities
	[that may be exercised] immediately or after the passage [of a
	certain amount] of time according to an oral or written agreement,
	arrangement, or understanding, or on the exercise of conversion
	rights, exchange rights, warrants, or options;
	(2)  vote the shares or other [similar] securities
	according to an oral or written agreement, arrangement, or
	understanding; or
	(3)  [subject to Subsection (c),] acquire, hold or
	dispose of, or vote the shares or other [similar] securities with
	another person who individually, or through an affiliate or
	associate, beneficially owns, directly or indirectly, the shares or
	other [similar] securities.
	(b) [(c)]  A person, however, is not considered a beneficial
	owner of shares or other [similar] securities for purposes of this
	subchapter if:
	(1)  the shares or other [similar] securities are:
	(A)  tendered under a tender or exchange offer
	made by the person or an affiliate or associate of the person before
	the tendered shares or securities are accepted for purchase or
	exchange; or
	(B)  subject to an agreement, arrangement, or
	understanding that expressly conditions the acquisition or
	purchase of shares or securities on the approval of the acquisition
	or purchase under Section 21.606 if the person has no direct or
	indirect rights of ownership or voting with respect to the shares or
	other securities until the time the approval is obtained; or
	(2)  the agreement, arrangement, or understanding to
	vote the shares:
	(A)  arises solely from an immediately revocable
	proxy that authorizes the person named in the proxy to vote at a
	meeting of the shareholders that has been called when the proxy is
	delivered or at an adjournment of the meeting; and
	(B)  would [is] not be reportable on a Schedule
	13D under the Securities Exchange Act of 1934 (15 U.S.C. Section 77b
	et seq.), as amended, or a comparable or successor report.
	SECTION 32.  Section 21.701(1), Business Organizations
	Code, is amended to read as follows:
	(1)  "Close corporation" means a domestic corporation
	formed under this subchapter or governed by this subchapter because
	of Section 21.705, 21.706, or 21.707.
	SECTION 33.  Section 22.153(a), Business Organizations
	Code, is amended to read as follows:
	(a)  Except as provided by Subsection (b) or by the
	corporation's certificate of formation, a corporation shall hold an
	annual meeting of the members at a time that is stated in or
	determined in accordance with the corporation's bylaws.
	SECTION 34.  Section 22.230, Business Organizations Code, is
	amended by amending Subsections (a) and (b) and adding Subsections
	(d) and (e) to read as follows:
	(a)  This section applies only to a contract or transaction
	between a corporation and:
	(1)  one or more [of the corporation's] directors,
	officers, or members, or one or more affiliates or associates of one
	or more directors, officers, or members, of the corporation; or
	(2)  an entity or other organization in which one or
	more [of the corporation's] directors, officers, or members, or one
	or more affiliates or associates of one or more directors,
	officers, or members, of the corporation:
	(A)  is a managerial official or a member; or
	(B)  has a financial interest.
	(b)  An otherwise valid and enforceable contract or
	transaction is valid and enforceable, and may not be void or
	voidable, notwithstanding any relationship or interest described
	by Subsection (a), if any one of the following conditions is
	satisfied [notwithstanding that a director, officer, or member of
	the corporation is present at or participates in the meeting of the
	board of directors, of a committee of the board, or of the members
	that authorizes the contract or transaction, or votes to authorize
	the contract or transaction, if]:
	(1)  the material facts as to the relationship or
	interest and as to the contract or transaction are disclosed to or
	known by:
	(A)  the corporation's board of directors, a
	committee of the board of directors, or the members, and the board,
	the committee, or the members in good faith and with ordinary care
	authorize the contract or transaction by the affirmative vote of
	the majority of the disinterested directors, committee members or
	members, regardless of whether the disinterested directors,
	committee members or members constitute a quorum; or
	(B)  the members entitled to vote on the
	authorization of the contract or transaction, and the contract or
	transaction is specifically approved in good faith and with
	ordinary care by a vote of the members; or
	(2)  the contract or transaction is fair to the
	corporation when the contract or transaction is authorized,
	approved, or ratified by the board of directors, a committee of the
	board of directors, or the members.
	(d)  A person who has the relationship or interest described
	by Subsection (a) may:
	(1)  be present at or participate in and, if the person
	is a director, member, or committee member, may vote at a meeting of
	the board of directors, of the members, or of a committee of the
	board that authorizes the contract or transaction; or
	(2)  sign, in the person's capacity as a director,
	member, or committee member, a written consent of directors,
	members, or committee members to authorize the contract or
	transaction.
	(e)  If at least one of the conditions of Subsection (b) is
	satisfied, neither the corporation nor any of the corporation's
	shareholders will have a cause of action against any of the persons
	described by Subsection (a) for breach of duty with respect to the
	making, authorization, or performance of the contract or
	transaction because the person had the relationship or interest
	described by Subsection (a) or took any of the actions authorized by
	Subsection (d).
	SECTION 35.  Section 101.054, Business Organizations Code,
	is amended by amending Subsection (a) and adding Subsection (e) to
	read as follows:
	(a)  Except as provided by this section, the following
	provisions may not be waived or modified in the company agreement of
	a limited liability company:
	(1)  this section;
	(2)  Section 101.101, 101.151, 101.206, 101.501,
	101.602(b), or 101.613 [101.502];
	(3)  Chapter 1, if the provision is used to interpret a
	provision or define a word or phrase contained in a section listed
	in this subsection;
	(4)  Chapter 2, except that Section 2.104(c)(2),
	2.104(c)(3), or 2.113 may be waived or modified in the company
	agreement;
	(5)  Chapter 3, except that Subchapters C and E may be
	waived or modified in the company agreement; or
	(6)  Chapter 4, 5, 7, 10, 11, or 12, other than Section
	11.056.
	(e)  The company agreement may not unreasonably restrict a
	person's right of access to records and information under Section
	101.502.
	SECTION 36.  Section 101.106, Business Organizations Code,
	is amended by adding Subsections (a-1) and (a-2) to read as follows:
	(a-1)  A membership interest may be community property under
	applicable law.
	(a-2)  A member's right to participate in the management and
	conduct of the business of the limited liability company is not
	community property.
	SECTION 37.  Subchapter C, Chapter 101, Business
	Organizations Code, is amended by adding Section 101.1115 to read
	as follows:
	Sec. 101.1115.  EFFECT OF DEATH OR DIVORCE ON MEMBERSHIP
	INTEREST. (a) For purposes of this code:
	(1)  on the divorce of a member, the member's spouse, to
	the extent of the spouse's membership interest, if any, is an
	assignee of the membership interest;
	(2)  on the death of a member, the member's surviving
	spouse, if any, and an heir, devisee, personal representative, or
	other successor of the member, to the extent of their respective
	membership interest, are assignees of the membership interest; and
	(3)  on the death of a member's spouse while the member
	is alive, an heir, devisee, personal representative, or other
	successor of the spouse, other than the member, to the extent of
	their respective membership interest, if any, is an assignee of the
	membership interest.
	(b)  This chapter does not impair an agreement for the
	purchase or sale of a membership interest at any time, including a
	purchase or sale following the death or divorce of an owner of the
	membership interest.
	SECTION 38.  Section 101.254(a), Business Organizations
	Code, is amended to read as follows:
	(a)  Except as provided by this title and Title 1, each
	governing person of a limited liability company and each officer
	[or agent] of a limited liability company vested with actual or
	apparent authority by the governing authority of the company is an
	agent of the company for purposes of carrying out the company's
	business.
	SECTION 39.  Section 101.255, Business Organizations Code,
	is amended by amending Subsections (a) and (b) and adding
	Subsections (d) and (e) to read as follows:
	(a)  This section applies only to a contract or transaction
	between a limited liability company and:
	(1)  one or more [of the company's] governing persons or
	officers, or one or more affiliates or associates of one or more
	governing persons or officers, of the company; or
	(2)  an entity or other organization in which one or
	more [of the company's] governing persons or officers, or one or
	more affiliates or associates of one or more governing persons or
	officers, of the company:
	(A)  is a managerial official; or
	(B)  has a financial interest.
	(b)  An otherwise valid and enforceable contract or
	transaction described by Subsection (a) is valid and enforceable,
	and may not be void or voidable, notwithstanding any relationship
	or interest described by Subsection (a), if any one of the following
	conditions is satisfied [notwithstanding that the governing person
	or officer having the relationship or interest described by
	Subsection (a) is present at or participates in the meeting of the
	governing authority, or of a committee of the governing authority,
	that authorizes the contract or transaction or votes or signs, in
	the person's capacity as a governing person or committee member, a
	written consent of governing persons or committee members to
	authorize the contract or transaction, if]:
	(1)  the material facts as to the relationship or
	interest described by Subsection (a) and as to the contract or
	transaction are disclosed to or known by:
	(A)  the company's governing authority or a
	committee of the governing authority and the governing authority or
	committee in good faith authorizes the contract or transaction by
	the approval of the majority of the disinterested governing persons
	or committee members, regardless of whether the disinterested
	governing persons or committee members constitute a quorum; or
	(B)  the members of the company, and the members
	in good faith approve the contract or transaction by vote of the
	members; or
	(2)  the contract or transaction is fair to the company
	when the contract or transaction is authorized, approved, or
	ratified by the governing authority, a committee of the governing
	authority, or the members of the company.
	(d)  A person who has the relationship or interest described
	by Subsection (a) may:
	(1)  be present at or participate in and, if the person
	is a governing person or committee member, may vote at a meeting of
	the governing authority or of a committee of the governing
	authority that authorizes the contract or transaction; or
	(2)  sign, in the person's capacity as a governing
	person or committee member, a written consent of the governing
	persons or committee members to authorize the contract or
	transaction.
	(e)  If at least one of the conditions of Subsection (b) is
	satisfied, neither the company nor any of the company's members
	will have a cause of action against any of the persons described by
	Subsection (a) for breach of duty with respect to the making,
	authorization, or performance of the contract or transaction
	because the person had the relationship or interest described by
	Subsection (a) or took any of the actions authorized by Subsection
	(d).
	SECTION 40.  Section 101.357(b), Business Organizations
	Code, is amended to read as follows:
	(b)  A manager or committee member of a limited liability
	company[, if authorized by the company agreement,] may vote:
	(1)  in person; or
	(2)  if authorized by the company agreement, by a proxy
	executed in writing by the manager or committee member, as
	appropriate.
	SECTION 41.  Section 101.611(b), Business Organizations
	Code, is amended to read as follows:
	(b)  Section 101.206 [101.207] does not apply to a
	distribution with respect to the series.
	SECTION 42.  Section 151.003(d), Business Organizations
	Code, is amended to read as follows:
	(d)  Receipt of notice by a general partner of a fact
	relating to the partnership is effective immediately as notice to
	the partnership unless fraud against the partnership is committed
	by or with the consent of the partner receiving the notice.
	SECTION 43.  Section 152.304(a), Business Organizations
	Code, is amended to read as follows:
	(a)  Except as provided by Subsection (b) or Section
	152.801(a), all partners are [liable] jointly and severally liable
	for all obligations [a debt or obligation] of the partnership
	unless otherwise:
	(1)  agreed by the claimant; or
	(2)  provided by law.
	SECTION 44.  Subchapter E, Chapter 152, Business
	Organizations Code, is amended by adding Section 152.308 to read as
	follows:
	Sec. 152.308.  PARTNER'S PARTNERSHIP INTEREST SUBJECT TO
	CHARGING ORDER. (a) On application by a judgment creditor of a
	partner or of any other owner of a partnership interest, a court
	having jurisdiction may charge the partnership interest of the
	judgment debtor to satisfy the judgment.
	(b)  To the extent that the partnership interest is charged
	in the manner provided by Subsection (a), the judgment creditor has
	only the right to receive any distribution to which the judgment
	debtor would otherwise be entitled in respect of the partnership
	interest.
	(c)  A charging order constitutes a lien on the judgment
	debtor's partnership interest. The charging order lien may not be
	foreclosed on under this code or any other law.
	(d)  The entry of a charging order is the exclusive remedy by
	which a judgment creditor of a partner or of any other owner of a
	partnership interest may satisfy a judgment out of the judgment
	debtor's partnership interest.
	(e)  This section does not deprive a partner or other owner
	of a partnership interest of a right under exemption laws with
	respect to the judgment debtor's partnership interest.
	(f)  A creditor of a partner or of any other owner of a
	partnership interest does not have the right to obtain possession
	of, or otherwise exercise legal or equitable remedies with respect
	to, the property of the limited partnership.
	SECTION 45.  Sections 152.406(a) and (c), Business
	Organizations Code, are amended to read as follows:
	(a)  For purposes of this code:
	(1)  on the divorce of a partner, the partner's spouse,
	to the extent of the spouse's partnership interest, if any, is a
	transferee of the partnership interest [from the partner];
	(2)  on the death of a partner:
	(A)  if the partnership interest of the deceased
	partner is subject to redemption under Subchapter H, the partner's
	surviving spouse, if any, and an heir, devisee, personal
	representative, or other successor of the partner, to the extent of
	their respective right to the redemption price, are creditors of
	the partnership until the redemption price is paid; or
	(B)  if the partnership interest of the deceased
	partner is not subject to redemption under Subchapter H, the
	partner's surviving spouse, if any, and an heir, devisee, personal
	representative, or other successor of the partner, to the extent of
	their respective partnership interest, are transferees of the
	partnership interest [, the partner's surviving spouse, if any, and
	an heir, legatee, or personal representative of the partner, to the
	extent of their respective partnership interest, is a transferee of
	the partnership interest from the partner]; and
	(3)  on the death of a partner's spouse, an heir,
	devisee [legatee], [or] personal representative, or other
	successor of the spouse, other than the partner, to the extent of
	their respective partnership interest, if any, is a transferee of
	the partnership interest [from the partner].
	(c)  This chapter does not impair an agreement for the
	purchase or sale of a partnership interest at any time, including on
	the death or divorce of an owner of the partnership interest.
	SECTION 46.  Section 152.707(b), Business Organizations
	Code, is amended to read as follows:
	(b)  In settling accounts among the partners, the
	partnership interest of a withdrawn partner that is [not] redeemed
	under Section 152.610 [Subchapter H] is credited with a share of any
	profits for the period after the partner's withdrawal but is
	charged with a share of losses for that period only to the extent of
	profits credited for that period.
	SECTION 47.  Section 152.801, Business Organizations Code,
	is amended to read as follows:
	Sec. 152.801.  LIABILITY OF PARTNER. (a) Except as provided
	by [Subsection (b) or] the partnership agreement, a partner [in a
	limited liability partnership] is not personally liable to any
	person, including a partner, directly or indirectly, by
	contribution, indemnity, or otherwise, for any [a debt or]
	obligation of the partnership incurred while the partnership is a
	limited liability partnership.
	(b)  [A partner in a limited liability partnership is not
	personally liable for a debt or obligation of the partnership
	arising from an error, omission, negligence, incompetence, or
	malfeasance committed by another partner or representative of the
	partnership while the partnership is a limited liability
	partnership and in the course of the partnership business unless
	the first partner:
	[(1)     was supervising or directing the other partner or
	representative when the error, omission, negligence, incompetence,
	or malfeasance was committed by the other partner or
	representative;
	[(2)     was directly involved in the specific activity in
	which the error, omission, negligence, incompetence, or
	malfeasance was committed by the other partner or representative;
	or
	[(3)     had notice or knowledge of the error, omission,
	negligence, incompetence, or malfeasance by the other partner or
	representative at the time of the occurrence and then failed to take
	reasonable action to prevent or cure the error, omission,
	negligence, incompetence, or malfeasance.
	[(c)]  Sections 2.101(1), 152.305, and 152.306 do not limit
	the effect of Subsection (a) in a limited liability partnership.
	(c)  For purposes of this section, [(d)     In this section,
	"representative" includes] an obligation is incurred while a
	partnership is [agent, servant, or employee of] a limited liability
	partnership if:
	(1)  the obligation relates to an action or omission
	occurring while the partnership is a limited liability partnership;
	or
	(2)  the obligation arises under a contract or
	commitment entered into while the partnership is a limited
	liability partnership.
	(d) [(e)]  Subsection [Subsections] (a) does [and (b) do]
	not affect:
	(1)  the liability of a partnership to pay its [debts
	and] obligations from partnership property;
	(2)  the liability of a partner, if any, imposed by law
	or contract independently of the partner's status as a partner; or
	(3)  the manner in which service of citation or other
	civil process may be served in an action against a partnership.
	(e) [(f)]  This section controls over the other parts of this
	chapter and the other partnership provisions regarding the
	liability of partners of a limited liability partnership, the
	chargeability of the partners for the [debts and] obligations of
	the partnership, and the obligations of the partners regarding
	contributions and indemnity.
	SECTION 48.  Sections 152.802(a), (f), and (j), Business
	Organizations Code, are amended to read as follows:
	(a)  In addition to complying with Section [Sections]
	152.803 [and 152.804], a partnership, to become a limited liability
	partnership, must file an application with the secretary of state
	in accordance with Chapter 4 and this section. The application
	must:
	(1)  set out:
	(A)  the name of the partnership;
	(B)  the federal taxpayer [tax] identification
	number of the partnership;
	(C)  the street address of the partnership's
	principal office in this state or outside of this state, as
	applicable; and
	(D)  the number of partners at the date of
	application; and
	(2)  contain a brief statement of the partnership's
	business.
	(f)  A registration may be withdrawn by filing a withdrawal
	notice with the secretary of state in accordance with Chapter 4.  A
	certificate from the comptroller stating that all taxes
	administered by the comptroller under Title 2, Tax Code, have been
	paid must be filed with the notice of withdrawal.  A withdrawal
	notice terminates the status of the partnership as a limited
	liability partnership from the date on which the notice is filed or
	a later date specified in the notice, but not later than the
	expiration date under Subsection (e).  A withdrawal notice must:
	(1)  contain:
	(A)  the name of the partnership;
	(B)  the federal taxpayer [tax] identification
	number of the partnership;
	(C)  the date of registration of the partnership's
	last application under this subchapter; and
	(D)  the current street address of the
	partnership's principal office in this state and outside this
	state, if applicable; and
	(2)  be signed by:
	(A)  a majority-in-interest of the partners; or
	(B)  one or more partners authorized by a
	majority-in-interest of the partners.
	(j)  A document filed under this subchapter may be amended by
	filing an application for amendment of registration with the
	secretary of state in accordance with Chapter 4 and this
	subsection. The application for amendment must:
	(1)  contain:
	(A)  the name of the partnership;
	(B)  the taxpayer [tax] identification number of
	the partnership;
	(C)  the identity of the document being amended;
	(D)  the date on which the document being amended
	was filed;
	(E)  a reference to the part of the document being
	amended; and
	(F)  the amendment or correction; and
	(2)  be signed by:
	(A)  a majority-in-interest of the partners; or
	(B)  one or more partners authorized by a
	majority-in-interest of the partners.
	SECTION 49.  Section 152.906(b), Business Organizations
	Code, is amended to read as follows:
	(b)  In addition to the information required by Section
	9.011, the certificate of withdrawal must:
	(1)  contain:
	(A)  the federal taxpayer [tax] identification
	number of the partnership; and
	(B)  the date of effectiveness of the
	partnership's last application for registration under this
	subchapter; and
	(2)  be signed by:
	(A)  a majority-in-interest of the partners; or
	(B)  one or more partners authorized by a
	majority-in-interest of the partners.
	SECTION 50.  Section 152.910(b), Business Organizations
	Code, is amended to read as follows:
	(b)  A partner of a foreign limited liability partnership is
	not liable for an [a debt or] obligation of the partnership solely
	because the partnership transacted business in this state without
	being registered.
	SECTION 51.  Section 152.911(b), Business Organizations
	Code, is amended to read as follows:
	(b)  The application for amendment must contain:
	(1)  the name of the partnership;
	(2)  the taxpayer [tax] identification number of the
	partnership;
	(3)  the identity of the document being amended;
	(4)  a reference to the date on which the document being
	amended was filed;
	(5)  the part of the document being amended; and
	(6)  the amendment or correction.
	SECTION 52.  Section 153.004(a), Business Organizations
	Code, is amended to read as follows:
	(a)  Except as provided by this section, the following
	provisions of Title 1 may not be waived or modified in the
	partnership agreement of a limited partnership:
	(1)  Chapter 1, if the provision is used to interpret a
	provision or define a word or phrase contained in a section listed
	in this subsection;
	(2)  Chapter 2, other than Section 2.104(c)(2),
	2.104(c)(3), or 2.113;
	(3)  Chapter 3, other than Subchapters C and E of that
	chapter and Section 3.151 (provided, that in all events a
	partnership agreement may not validly waive or modify Section
	[Sections] 153.551 or unreasonably restrict a partner's right of
	access to books and records under Section [and] 153.552); or
	(4)  Chapter 4, 5, 10, 11, or 12, other than Section
	11.058.
	SECTION 53.  Section 153.103, Business Organizations Code,
	is amended to read as follows:
	Sec. 153.103.  ACTIONS NOT CONSTITUTING PARTICIPATION IN
	BUSINESS FOR LIABILITY PURPOSES. For purposes of this section and
	Sections 153.102, 153.104, and 153.105, a limited partner does not
	participate in the control of the business because the limited
	partner has or has acted in one or more of the following capacities
	or possesses or exercises one or more of the following powers:
	(1)  acting as:
	(A)  a contractor for or an officer or other agent
	or employee of the limited partnership;
	(B)  a contractor for or an agent or employee of a
	general partner;
	(C)  an officer, director, or stockholder of a
	corporate general partner;
	(D)  a partner of a partnership that is a general
	partner of the limited partnership; or
	(E)  a member or manager of a limited liability
	company that is a general partner of the limited partnership;
	(2)  acting in a capacity similar to that described in
	Subdivision (1) with any other person that is a general partner of
	the limited partnership;
	(3)  consulting with or advising a general partner on
	any matter, including the business of the limited partnership;
	(4)  acting as surety, guarantor, or endorser for the
	limited partnership, guaranteeing or assuming one or more specific
	obligations of the limited partnership, or providing collateral for
	borrowings of the limited partnership;
	(5)  calling, requesting, attending, or participating
	in a meeting of the partners or the limited partners;
	(6)  winding up the business of a limited partnership
	under Chapter 11 and Subchapter K of this chapter;
	(7)  taking an action required or permitted by law to
	bring, pursue, settle, or otherwise terminate a derivative action
	in the right of the limited partnership;
	(8)  serving on a committee of the limited partnership
	or the limited partners; or
	(9)  proposing, approving, or disapproving, by vote or
	otherwise, one or more of the following matters:
	(A)  the winding up or termination of the limited
	partnership;
	(B)  an election to reconstitute the limited
	partnership or continue the business of the limited partnership;
	(C)  the sale, exchange, lease, mortgage,
	assignment, pledge, or other transfer of, or granting of a security
	interest in, an asset of the limited partnership;
	(D)  the incurring, renewal, refinancing, or
	payment or other discharge of indebtedness by the limited
	partnership;
	(E)  a change in the nature of the business of the
	limited partnership;
	(F)  the admission, removal, or retention of a
	general partner;
	(G)  the admission, removal, or retention of a
	limited partner;
	(H)  a transaction or other matter involving an
	actual or potential conflict of interest;
	(I)  an amendment to the partnership agreement or
	certificate of formation;
	(J)  if the limited partnership is qualified as an
	investment company under the federal Investment Company Act of 1940
	(15 U.S.C. Section 80a-1 et seq.), as amended, any matter required
	by that Act or the rules and regulations of the Securities and
	Exchange Commission under that Act, to be approved by the holders of
	beneficial interests in an investment company, including:
	(i)  electing directors or trustees of the
	investment company;
	(ii)  approving or terminating an investment
	advisory or underwriting contract;
	(iii)  approving an auditor; and
	(iv)  acting on another matter that that Act
	requires to be approved by the holders of beneficial interests in
	the investment company;
	(K)  indemnification of a general partner under
	Chapter 8 or otherwise;
	(L)  any other matter stated in the partnership
	agreement;
	(M)  the exercising of a right or power granted or
	permitted to limited partners under this code and not specifically
	enumerated in this section; or
	(N)  the merger, [or] conversion, or interest
	exchange with respect to [of] a limited partnership.
	SECTION 54.  Section 153.158(b), Business Organizations
	Code, is amended to read as follows:
	(b)  Until an action described by Subsection (a) is taken,
	the owner of the partnership interest of the withdrawn general
	partner has the status of an assignee under Subchapter F[, Section
	153.113, and Section 153.555].
	SECTION 55.  Section 153.501(b), Business Organizations
	Code, is amended to read as follows:
	(b)  The limited partnership may cancel under Section 11.152
	an event requiring winding up arising from an event of withdrawal of
	a general partner as specified in Section 11.058(b) if:
	(1)  there remains at least one general partner and the
	partnership agreement permits the business of the limited
	partnership to be carried on by the remaining general partners and
	those remaining general partners carry on the business; or
	(2)  not later than one year after the event, all
	remaining partners, or another group or percentage of partners
	specified in the partnership agreement:
	(A)  agree in writing to continue the business of
	the limited partnership [in writing]; and
	(B)  to the extent that they desire or if there are
	no remaining general partners, agree to the appointment of one or
	more new general partners.
	SECTION 56.  Section 153.504, Business Organizations Code,
	is amended to read as follows:
	Sec. 153.504.  DISPOSITION OF ASSETS. On the winding up of a
	limited partnership, its assets shall be paid or transferred as
	follows:
	(1)  to the extent otherwise permitted by law, to
	creditors, including partners who are creditors other than solely
	because of the application of Section 153.207, for the payment or
	the making of reasonable provision for payment to satisfy the
	liabilities of the limited partnership;
	(2)  unless otherwise provided by the partnership
	agreement, to partners and former partners to satisfy the
	partnership's liability for distributions under Section 153.111 or
	153.209; and
	(3)  unless otherwise provided by the partnership
	agreement, to partners first for the return of their capital and
	second with respect to their partnership interests, in the
	proportions provided by Sections 153.208(a) and (b).
	SECTION 57.  Section 153.551(a), Business Organizations
	Code, is amended to read as follows:
	(a)  A domestic limited partnership shall maintain the
	following records in its principal office in the United States or
	make the records available in that office not later than the fifth
	day after the date on which a written request under Section
	153.552(a) is received:
	(1)  a current list that states:
	(A)  the name and mailing address of each partner,
	separately identifying in alphabetical order the general partners
	and the limited partners;
	(B)  the last known street address of the business
	or residence of each general partner;
	(C)  the percentage or other interest in the
	partnership owned by each partner; and
	(D)  if one or more classes or groups are
	established under the partnership agreement, the names of the
	partners who are members of each specified class or group;
	(2)  a copy of:
	(A)  the limited partnership's federal, state,
	and local information or income tax returns for each of the
	partnership's six most recent tax years;
	(B)  the partnership agreement and certificate of
	formation; and
	(C)  all amendments or restatements;
	(3)  copies of any document that creates, in the manner
	provided by the partnership agreement, classes or groups of
	partners;
	(4)  an executed copy of any powers of attorney under
	which the partnership agreement, certificate of formation, and all
	amendments or restatements to the agreement and certificate have
	been executed;
	(5)  unless contained in the written partnership
	agreement, a written statement of:
	(A)  the amount of the cash contribution and a
	description and statement of the agreed value of any other
	contribution made by each partner;
	(B)  the amount of the cash contribution and a
	description and statement of the agreed value of any other
	contribution that the partner has agreed to make in the future as an
	additional contribution;
	(C)  [the date on which additional contributions
	are to be made or] the [date of] events requiring additional
	contributions to be made or the date on which additional
	contributions are to be made;
	(D)  the events requiring the winding up of the
	limited partnership; and
	(E)  the date on which each partner in the limited
	partnership became a partner; and
	(6)  books and records of the accounts of the limited
	partnership.
	SECTION 58.  Section 200.317, Business Organizations Code,
	is amended by amending Subsections (a) and (b) and adding
	Subsections (d) and (e) to read as follows:
	(a)  This section applies only to a contract or transaction
	between a real estate investment trust and:
	(1)  one or more [of the trust's] trust managers or
	officers, or one or more affiliates or associates of one or more
	directors or officers, of the trust; or
	(2)  an entity or other organization in which one or
	more [of the trust's] trust managers or officers, or one or more
	affiliates or associates of one or more directors or officers, of
	the trust:
	(A)  is a managerial official; or
	(B)  has a financial interest.
	(b)  An otherwise valid and enforceable contract or
	transaction described by Subsection (a) is valid and enforceable,
	and may not be void or voidable, notwithstanding any relationship
	or interest described by Subsection (a), if any one of the following
	conditions is satisfied [notwithstanding that the trust manager or
	officer having the relationship or interest described by Subsection
	(a) is present at or participates in the meeting of the trust
	managers or of a committee of the trust managers that authorizes the
	contract or transaction, or votes or signs, in the person's
	capacity as a trust manager or committee member, a unanimous
	written consent of trust managers or committee members to authorize
	the contract or transaction, if]:
	(1)  the material facts as to the relationship or
	interest described by Subsection (a) and as to the contract or
	transaction are disclosed to or known by:
	(A)  the trust managers or a committee of the
	trust managers, and the trust managers or committee of the trust
	managers in good faith authorize the contract or transaction by the
	approval of the majority of disinterested trust managers or
	committee members, regardless of whether the disinterested trust
	managers or committee members constitute a quorum; or
	(B)  the shareholders entitled to vote on the
	authorization of the contract or transaction, and the contract or
	transaction is specifically approved in good faith by a vote of the
	shareholders; or
	(2)  the contract or transaction is fair to the real
	estate investment trust when the contract or transaction is
	authorized, approved, or ratified by the trust managers, a
	committee of the trust managers, or the shareholders.
	(d)  A person who has the relationship or interest described
	by Subsection (a) may:
	(1)  be present at or participate in and, if the person
	is a trust manager or committee member, may vote at a meeting of the
	trust managers, or of a committee of the trust managers, that
	authorizes the contract or transaction; or
	(2)  sign, in the person's capacity as a trust manager
	or committee member, a unanimous written consent of the trust
	managers or committee members to authorize the contract or
	transaction.
	(e)  If at least one of the conditions of Subsection (b) is
	satisfied, neither the trust nor any of the trust's shareholders
	will have a cause of action against any of the persons described by
	Subsection (a) for breach of duty with respect to the making,
	authorization, or performance of the contract or transaction
	because the person had the relationship or interest described by
	Subsection (a) or took any of the actions authorized by Subsection
	(d).
	SECTION 59.  Sections 252.011(b) and (f), Business
	Organizations Code, are amended to read as follows:
	(b)  A statement appointing an agent must contain:
	(1)  the name of the nonprofit association;
	(2)  the federal taxpayer [tax] identification number
	of the nonprofit association, if applicable;
	(3)  the address in this state, including the street
	address, if any, of the nonprofit association or, if the nonprofit
	association does not have an address in this state, its address out
	of state; and
	(4)  the name of the person in this state authorized to
	receive service of process and the person's address, including the
	street address, in this state.
	(f)  A statement appointing an agent may be canceled by
	filing with the secretary of state a written notice of cancellation
	executed by a person authorized to manage the affairs of the
	nonprofit association. A notice of cancellation must contain:
	(1)  the name of the nonprofit association;
	(2)  the federal taxpayer [tax] identification number
	of the nonprofit association, if applicable;
	(3)  the date of filing of the nonprofit association's
	statement appointing the agent; and
	(4)  a current street address, if any, of the nonprofit
	association in this state or, if the nonprofit association does not
	have an address in this state, its address out of state.
	SECTION 60.  Section 402.003, Business Organizations Code,
	is amended to read as follows:
	Sec. 402.003.  EARLY ADOPTION OF CODE BY EXISTING DOMESTIC
	ENTITY. (a)  A domestic entity formed before the effective date of
	this code may voluntarily elect to adopt and become subject to this
	code by:
	(1)  adopting the code by complying with the procedures
	for approval, under prior law and its governing documents, of an
	amendment to:
	(A)  its articles of incorporation, with respect
	to a corporation or cooperative association;
	(B)  its regulations, with respect to a limited
	liability company;
	(C)  its articles of association, with respect to
	a professional association;
	(D)  its declaration of trust, with respect to a
	real estate investment trust;
	(E)  its partnership agreement, with respect to a
	partnership; or
	(F)  its primary governing document, with respect
	to another type of domestic entity;
	(2)  if any of its governing documents, including its
	certificate of formation, do not comply with this code, complying
	with the procedures, under prior law and its governing documents,
	to amend the noncomplying governing documents to comply with this
	code, including filing with the filing officer in accordance with
	Chapter 4 a certificate of amendment to cause its certificate of
	formation to comply with this code; and
	(3)  if the domestic entity is a filing entity, filing
	with the filing officer in accordance with Chapter 4 a statement
	that the filing entity is electing to adopt this code.
	(b)  A domestic entity that elected to adopt and become
	subject to this code as provided by Subsection (a) is not considered
	to have failed to comply with Subsection (a)(2) because:
	(1)  the entity's governing documents do not state the
	type of entity formed; or
	(2)  a circumstance described by Section 402.0051
	applies.
	SECTION 61.  Section 402.004, Business Organizations Code,
	is amended to read as follows:
	Sec. 402.004.  EARLY ADOPTION OF CODE BY REGISTERED FOREIGN
	FILING ENTITY. (a)  A foreign filing entity registered with the
	secretary of state to transact business in this state before the
	effective date of this code may voluntarily elect to adopt and
	become subject to this code by filing with the secretary of state in
	accordance with Chapter 4:
	(1)  a statement that the foreign filing entity is
	electing to adopt this code; and
	(2)  an amendment to its application for registration
	that would cause its application for registration to comply with
	this code.
	(b)  A foreign filing entity that elected to adopt and become
	subject to this code as provided by Subsection (a) is not considered
	to have failed to comply with Subsection (a)(2) because:
	(1)  the application for registration or any amendment
	to the registration:
	(A)  does not state the entity's type; or
	(B)  does not include the appointment of the
	secretary of state as agent for service of process under the
	circumstances provided by Section 5.251; or
	(2)  a circumstance described by Section 402.0051
	applies.
	SECTION 62.  Section 402.005, Business Organizations Code,
	is amended by adding Subsection (c) to read as follows:
	(c)  A domestic or foreign filing entity is not considered to
	have failed to comply with Subsection (a)(3) or (4) because:
	(1)  the certificate of formation does not state the
	type of entity formed;
	(2)  the application for registration or any amendment
	to the registration:
	(A)  does not state the entity's type; or
	(B)  does not include the appointment of the
	secretary of state as agent for service of process, notice, or
	demand under the circumstances provided by Section 5.251; or
	(3)  a circumstance described by Section 402.0051
	applies.
	SECTION 63.  Chapter 402, Business Organizations Code, is
	amended by adding Section 402.0051 to read as follows:
	Sec. 402.0051.  EFFECT OF REFERENCES TO PRIOR LAW AND USE OF
	SYNONYMOUS TERMS. (a) A governing document or a filing instrument,
	including a certificate of formation or application for
	registration, is not considered to have failed to conform to this
	code if the governing document or filing instrument:
	(1)  contains a reference to prior law that was
	applicable at the time of its filing or adoption;
	(2)  contains a provision that was authorized by prior
	law at the time of its filing or adoption;
	(3)  includes a term or phrase described by Section
	1.006 of this code; or
	(4)  includes a term or phrase from prior law that is
	different from the corresponding term or phrase used in this code.
	(b)  A reference in a governing document or filing instrument
	to a statute or provision of a statute in effect before January 1,
	2010, that was repealed by this code is considered to be a reference
	to the provision or provisions of this code that correspond to the
	repealed statute or provision unless the governing document or
	filing instrument expressly provides otherwise.
	(c)  An entity is not considered to have failed to comply
	with this code if a governing document or filing instrument makes a
	reference to prior law rather than to the corresponding provisions
	of the prior law in this code.
	(d)  For purposes of this section, prior law includes a
	predecessor statute to the prior law.
	SECTION 64.  The heading to Section 402.013, Business
	Organizations Code, is amended to read as follows:
	Sec. 402.013.  REINSTATEMENT OF ENTITIES CANCELED, REVOKED,
	DISSOLVED, INVOLUNTARILY DISSOLVED, SUSPENDED, OR FORFEITED UNDER
	PRIOR LAW.
	SECTION 65.  Section 402.013, Business Organizations Code,
	is amended by adding Subsections (b-1) and (b-2) to read as follows:
	(b-1)  On or after January 1, 2010, a domestic filing entity
	whose certificate of formation or equivalent governing document has
	been canceled, revoked, voluntarily dissolved, involuntarily
	dissolved, suspended, or forfeited under prior law may reinstate
	the entity's certificate of formation or equivalent governing
	document in accordance with this code.
	(b-2)  On or after January 1, 2010, a foreign filing entity
	whose registration to do business has been canceled, revoked,
	suspended, or forfeited under prior law may reinstate its
	registration in accordance with this code.
	SECTION 66.  (a)  In this section:
	(1)  "Governing document" has the meaning assigned by
	Section 1.002(36), Business Organizations Code.
	(2)  "Prior law" has the meaning assigned by Section
	401.001, Business Organizations Code.
	(b)  This section applies only to a domestic entity whose
	certificate of formation or equivalent governing document was
	voluntarily dissolved under prior law.
	(c)  The reinstatement of a domestic filing entity that was
	filed in accordance with Chapter 11 and Section 402.003, Business
	Organizations Code, after December 31, 2005, and before January 1,
	2010, is validated in all respects as of the date on which the
	reinstatement occurred.
	SECTION 67.  The following sections of the Business
	Organizations Code are repealed:
	(1)  Section 21.001;
	(2)  Section 152.802(i); and
	(3)  Section 152.804.
	SECTION 68.  This Act takes effect September 1, 2011.