Tex. Business Organizations Code § 21.554 — TX Code / Code bo / Chapter 21 / Section 21.554
§ 21.554. DETERMINATION BY DIRECTORS OR INDEPENDENT PERSONS.
Status: in_force

(a) A determination of how to proceed on allegations made in a demand or petition relating to a derivative proceeding must be made by an affirmative vote of the majority of:

(1) all independent and disinterested directors of the corporation, regardless of whether the independent and disinterested directors constitute a quorum of the board of directors;

(2) a committee consisting of one or more independent and disinterested directors appointed by an affirmative vote of the majority of one or more independent and disinterested directors, regardless of whether the independent and disinterested directors constitute a quorum of the board of directors; or

(3) a panel of one or more independent and disinterested individuals appointed by the court on a motion by the corporation listing the names of the individuals to be appointed and stating that, to the best of the corporation's knowledge, the individuals to be appointed are disinterested and qualified to make the determinations contemplated by Section 21.558.

(b) The court shall appoint a panel under Subsection (a)(3) if the court finds that the individuals recommended by the corporation are independent and disinterested and are otherwise qualified with respect to expertise, experience, independent judgment, and other factors considered appropriate by the court under the circumstances to make the determinations. An individual appointed by the court to a panel under this section may be a director. An individual appointed by the court to a panel under this section may not be held liable to the corporation or the corporation's shareholders for an action taken or omission made by the individual in that capacity, except for an act or omission constituting fraud or wilful misconduct.

(c) Before the corporation's determination of how to proceed on the allegations under Subsection (a), the corporation may petition the court having jurisdiction to make a finding as to whether the directors identified or appointed under Subsection (a)(1) or (2) are independent and disinterested with respect to the allegations made in the demand.

(d) If a derivative proceeding has been instituted, a petition under Subsection (c) shall be filed in the court in which the proceeding was instituted. If no derivative proceeding has been instituted, a petition under Subsection (c) shall be filed in the business court unless the corporation's principal place of business in this state is located in a county not contained within an operating division of the business court, in which case the petition may be filed in a district court in the county in which the corporation's principal place of business in this state is located.

(e) The corporation must serve a copy of the petition on the shareholder filing the derivative proceeding or making the demand.

(f) Unless extended for good cause, a court in which a petition under Subsection (c) is filed must conduct an evidentiary hearing on the petition on or before the 45th day after the date the petition is filed.

(g) A shareholder on whom a petition is served under Subsection (e) is entitled to be served with all notices and papers filed in the action and to intervene in the action to challenge the petition. Unless good cause is shown, a shareholder who is not already a party to the action must intervene not later than the seventh day before the date the petition is heard by the court.

(h) Unless extended for good cause, not later than the 75th day after the date the petition is filed, the court shall sign an order stating whether the directors are independent and disinterested.

(i) A court's finding that the directors or individuals are independent and disinterested under this section shall be dispositive in the absence of discovery of facts, not presented to the court, constituting evidence sufficient to prove that one or more of those directors or individuals are not independent and disinterested.