Bill Text: TX HB988 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the duty of the board of directors of a corporation to maximize the value of the corporation's shares.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-11-12 - Filed [HB988 Detail]
Download: Texas-2025-HB988-Introduced.html
| By: Harrison | H.B. No. 988 | |
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| relating to the duty of the board of directors of a corporation to | ||
| maximize the value of the corporation's shares. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 21.401, Business Organizations Code, is | ||
| amended by adding Subsection (f) to read as follows: | ||
| (f) Notwithstanding any other law, in discharging the | ||
| duties of a director, the director shall act to maximize the value | ||
| of the corporation's shares. It is considered a breach of the | ||
| director's fiduciary duty if the director prioritizes another | ||
| consideration over the maximization of the value of the | ||
| corporation's shares. | ||
| SECTION 2. This Act applies only to an action taken by the | ||
| board of directors of a corporation on or after the effective date | ||
| of this Act. | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2025. | ||
