Source: https://chowinslaw.com/resources/texas-business-laws/287-winding-up-and-terminating-a-texas-business-organization
Timestamp: 2019-04-23 04:05:58+00:00

Document:
(1) "Claim" means a right to payment, damages, or property, whether liquidated or unliquidated, accrued or contingent, matured or unmatured.
(2) "Event requiring a winding up" or "event requiring winding up" means an event specified by § 11.051.
(B) a contractual obligation incurred after termination.
(B) forfeited pursuant to the Tax Code, unless the forfeiture has been set aside.
(5) "Terminated filing entity" means a terminated entity that is a filing entity.
(B) if applicable to the domestic entity, § 11.057(a) or (b) or 11.058(a).
(7) "Voluntary winding up" means winding up as a result of a voluntary decision to wind up.
(8) "Winding up" means the process of winding up the business and affairs of a domestic entity as a result of the occurrence of an event requiring winding up.
§ 11.051. EVENT REQUIRING WINDING UP OF DOMESTIC ENTITY.
(5) a decree by a court requiring the winding up, dissolution, or termination of the domestic entity, rendered under this code or other law.
§ 11.052. WINDING UP PROCEDURES.
(4) perform any other act required to wind up its business and affairs.
(b) During the winding up process, the domestic entity may prosecute or defend a civil, criminal, or administrative action.
§ 11.053. PROPERTY APPLIED TO DISCHARGE LIABILITIES AND OBLIGATIONS.
(a) Except as provided by Subsection (b) and the title of this code governing the domestic entity, a domestic entity in the process of winding up shall apply and distribute its property to discharge, or make adequate provision for the discharge of, all of the domestic entity's liabilities and obligations.
(2) make adequate provision for the application of the property described by Subdivision (1).
(c) Except as provided by the title of this code governing the domestic entity, after a domestic entity has discharged, or made adequate provision for the discharge of, all of its liabilities and obligations, the domestic entity shall distribute the remainder of its property, in cash or in kind, to the domestic entity's owners according to their respective rights and interests.
(d) A domestic entity may continue its business wholly or partly, including delaying the disposition of property of the domestic entity, for the limited period necessary to avoid unreasonable loss of the entity's property or business.
§ 11.054. COURT SUPERVISION OF WINDING UP PROCESS.
(3) make any other order, direction, or inquiry that the circumstances may require.
§ 11.055. COURT ACTION OR PROCEEDING DURING WINDING UP.
During the winding up process, a domestic entity may continue prosecuting or defending a court action or proceeding by or against the domestic entity.
§ 11.056. SUPPLEMENTAL PROVISIONS FOR LIMITED LIABILITY COMPANY.
(2) to become a member of the company effective as of the date of the termination or to designate another person who agrees to become a member of the company effective as of the date of the termination.
(b) The event requiring winding up specified in Subsection (a) may be canceled in accordance with §§ 11.152(a) and 101.552(c).
§ 11.057. SUPPLEMENTAL PROVISIONS FOR DOMESTIC GENERAL PARTNERSHIP.
(a) Unless otherwise provided by the partnership agreement, a voluntary decision to wind up a domestic general partnership, other than a partnership described by Subsection (b), requires the express will of a majority-in-interest of the partners who have not assigned their interests. A voluntary decision to wind up a partnership under this subsection may be revoked in accordance with §§ 11.151 and 152.709(e).
(b) Unless otherwise provided by the partnership agreement, a voluntary decision to wind up a domestic general partnership that has a period of duration or is for a particular undertaking, or in which the partnership agreement provides for the winding up of the partnership on occurrence of a specified event, requires the express will of all of the partners. A voluntary decision to wind up a partnership under this subsection may be revoked in accordance with §§ 11.151 and 152.709(d).
(3) the sale of all or substantially all of the property of the general partnership outside the ordinary course of business, unless otherwise provided by the partnership agreement.
(d) In addition to the events specified by Subsection (c), unless otherwise provided by the partnership agreement, if a domestic general partnership does not have a period of duration, is not for a particular undertaking, and is not required under its partnership agreement to wind up the partnership on occurrence of a specified event, an event requiring winding up of the partnership under § 11.051(4) occurs on the 60th day after the date on which the partnership receives notice of a request for winding up the partnership from a partner, other than a partner who has agreed not to withdraw, or a later date as specified by the request, unless a majority-in-interest of the partners deny the request for winding up or agree to continue the partnership. The continuation of the business by the other partners or by those who habitually acted in the business before the request, other than the partner making the request, without any settlement or liquidation of the partnership business, is prima facie evidence of an agreement to continue the partnership under this subsection.
(e) An event requiring winding up specified in Subsection (c)(1), (c)(3), or (d) may be canceled in accordance with §§ 11.152 and 152.709.
(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.
§ 11.058. SUPPLEMENTAL PROVISION FOR LIMITED PARTNERSHIP.
(a) A voluntary decision to wind up a domestic limited partnership requires the written consent of all partners in the limited partnership unless otherwise provided by the partnership agreement. The voluntary decision to wind up may be revoked in accordance with §§ 11.151 and 153.501(d).
(b) An event of withdrawal of a general partner of a domestic limited partnership is an event requiring winding up under § 11.051(4) unless otherwise provided by the partnership agreement. The event requiring winding up specified in this subsection may be canceled in accordance with §§ 11.152(a) and 153.501(b).
(c) An event requiring winding up of a limited partnership under § 11.051(4) includes when there are no limited partners in the limited partnership. The event requiring winding up specified in this subsection may be canceled in accordance with §§ 11.152(a) and 153.501(e).
§ 11.059. SUPPLEMENTAL PROVISIONS FOR CORPORATIONS.
(2) a bylaw of the corporation adopted by the owners or members of the corporation in the same manner as an amendment to the certificate of formation of the corporation.
§ 11.101. CERTIFICATE OF TERMINATION FOR FILING ENTITY.
(a) On completion of the winding up process under Subchapter B, a filing entity must file a certificate of termination in accordance with Chapter 4.
(b) A certificate from the comptroller that all taxes administered by the comptroller under Title 2, Tax Code, have been paid must be filed with the certificate of termination if the filing entity is a taxable entity under Chapter 171, Tax Code, other than a nonprofit corporation.
(6) any other information required by this code to be included in the certificate of termination for the filing entity.
§ 11.102. EFFECTIVENESS OF TERMINATION OF FILING ENTITY.
Except as otherwise provided by this chapter, the existence of a filing entity terminates on the filing of a certificate of termination with the filing officer.
§ 11.103. EFFECTIVENESS OF TERMINATION OF NONFILING ENTITY.
Except as otherwise provided by this chapter, the existence of a nonfiling entity terminates on the completion of the winding up of its business and affairs. Notice of the termination must be provided by the nonfiling entity in the manner provided in the governing documents of the nonfiling entity if notice of termination is required under the governing documents.
§ 11.104. ACTION BY SECRETARY OF STATE.
(2) the entity has failed to file an amendment to extend its period of duration in accordance with § 11.152.
§ 11.105. SUPPLEMENTAL INFORMATION REQUIRED BY CERTIFICATE OF TERMINATION OF NONPROFIT CORPORATION.
(2) there is no suit pending against the nonprofit corporation or adequate provision has been made for the satisfaction of any judgment, order, or decree that may be entered against the nonprofit corporation in a pending suit.
(b) In addition to the statements required by Subsection (a), if the nonprofit corporation received and held property permitted to be used only for charitable, religious, eleemosynary, benevolent, educational, or similar purposes, but the nonprofit corporation did not hold the property on a condition requiring return, transfer, or conveyance because of the winding up and termination, the certificate of termination must include a statement that distribution of that property has been effected in accordance with a plan of distribution adopted in compliance with this code for the distribution of that property.
§ 11.151. REVOCATION OF VOLUNTARY WINDING UP.
(a) Before the termination of the existence of a domestic entity takes effect, the domestic entity may revoke a voluntary decision to wind up the entity by approval of the revocation in the manner specified in the title of this code governing the entity.
(b) A domestic entity may continue its business following the revocation of a voluntary decision to wind up under Subsection (a).
§ 11.152. CONTINUATION OF BUSINESS WITHOUT WINDING UP.
(a) Subject to Subsections (c) and (d), a domestic entity to which an event requiring the winding up of the entity occurs as specified by § 11.051(3) or (4) may cancel the event requiring winding up in the manner specified in the title of this code governing the domestic entity not later than the first anniversary of the date of the event requiring winding up or an earlier period prescribed by the title of this code governing the domestic entity.
(b) A domestic entity whose specified period of duration has expired may cancel that event requiring winding up by amending its governing documents in the manner provided by this code, not later than the third anniversary of the date the period expired or an earlier date prescribed by the title of this code governing the domestic entity, to extend its period of duration. The expiration of its period of duration does not by itself create a vested right on the part of an owner, member, or creditor of the entity to prevent the extension of that period. An act undertaken or a contract entered into by the domestic entity during a period in which the entity could have extended its period of duration as provided by this subsection is not invalidated by the expiration of that period, regardless of whether the entity has taken any action to extend its period of duration.
(c) A domestic entity may not cancel an event requiring winding up specified in § 11.051(3) and continue its business if the action is prohibited by the entity's governing documents or the title of this code governing the entity.
(2) is expressly authorized by the title of this code governing the entity.
(e) On cancellation of an event requiring winding up under this section, the domestic entity may continue its business.
§ 11.153. COURT REVOCATION OF FRAUDULENT TERMINATION.
Notwithstanding any provision of this code to the contrary, a court may order the revocation of termination of an entity's existence that was terminated as a result of actual or constructive fraud. In an action under this section, any limitation period provided by law is tolled in accordance with the discovery rule. The secretary of state shall take any action necessary to implement an order under this section.
§ 11.201. CONDITIONS FOR REINSTATEMENT.
(D) sign an instrument or agreement.
(3) forfeiture under the Tax Code.
§ 11.202. PROCEDURES FOR REINSTATEMENT.
(a) To the extent applicable, a terminated entity, to be reinstated, must complete the requirements of this § not later than the third anniversary of the date the termination of the terminated entity's existence took effect.
(b) The owners, members, governing persons, or other persons must approve the reinstatement of the domestic entity in the manner provided by the title of this code governing the domestic entity.
(c) After approval of the reinstatement of a filing entity that was terminated, and not later than the third anniversary of the date of the filing of the entity's certificate of termination, the filing entity shall file a certificate of reinstatement in accordance with Chapter 4.
(5) the name of the entity's registered agent and the address of the entity's registered office.
(e) A tax clearance letter from the comptroller stating that the filing entity has satisfied all franchise tax liabilities and may be reinstated must be filed with the certificate of reinstatement if the filing entity is a taxable entity under Chapter 171, Tax Code, other than a nonprofit corporation.
§ 11.203. USE OF NAME SIMILAR TO PREVIOUSLY REGISTERED NAME.
If the secretary of state determines that a filing entity's name contained in a certificate of reinstatement filed under § 11.202 is the same as, deceptively similar to, or similar to a name of a filing entity or foreign entity on file as provided by or reserved or registered under this code, the secretary of state may not accept for filing the certificate of reinstatement unless the filing entity contemporaneously amends its certificate of formation to change its name or obtains written consent for the use of the similar name. §§ 4.007 and 4.008 apply to a written consent for the use of a similar name under this § to the same extent those §§ apply to filing instruments.
§ 11.204. EFFECTIVENESS OF REINSTATEMENT OF NONFILING ENTITY.
The reinstatement of a terminated nonfiling entity takes effect on the approval required by § 11.202(b).
§ 11.205. EFFECTIVENESS OF REINSTATEMENT OF FILING ENTITY.
The reinstatement of a terminated filing entity that previously filed a certificate of termination takes effect on the filing of the entity's certificate of reinstatement.
§ 11.206. EFFECT OF REINSTATEMENT.
(2) the terminated entity may carry on its business as if the termination of its existence had not occurred.
§ 11.251. TERMINATION OF FILING ENTITY BY SECRETARY OF STATE.
(a) If it appears to the secretary of state that, with respect to a filing entity, a circumstance described by Subsection (b) exists, the secretary of state may notify the entity of the circumstance by regular or certified mail addressed to the entity at the entity's registered office or principal place of business as shown on the records of the secretary of state.
(2) the entity has failed to, and, before the 16th day after the date notice was mailed has not corrected the entity's failure to, pay a fee required in connection with the filing of its certificate of formation, or payment of the fee was dishonored when presented by the state for payment.
(c) This subchapter shall not apply to real estate investment trusts.
§ 11.252. CERTIFICATE OF TERMINATION.
(2) deliver a certificate of termination by regular or certified mail to the filing entity at its registered office or principal place of business.
(2) the date and cause of the termination.
(c) Except as otherwise provided by this chapter, the existence of the filing entity is terminated on the issuance of the certificate of termination by the secretary of state.
§ 11.253. REINSTATEMENT BY SECRETARY OF STATE AFTER INVOLUNTARY TERMINATION.
(2) the secretary of state finds that the circumstances that led to the involuntary termination did not exist at the time of termination.
(2) a tax clearance letter from the comptroller stating that the filing entity has satisfied all franchise tax liabilities and may be reinstated, if the filing entity is a taxable entity under Chapter 171, Tax Code, other than a nonprofit corporation.
(d) If a filing entity is reinstated before the third anniversary of the date of its involuntary termination, the entity is considered to have continued in existence without interruption from the date of termination. The reinstatement shall have no effect on any issue of personal liability of the governing persons, officers, or agents of the filing entity during the period between termination and reinstatement.
§ 11.254. REINSTATEMENT OF CERTIFICATE OF FORMATION FOLLOWING TAX FORFEITURE.
A filing entity whose certificate of formation has been forfeited under the provisions of the Tax Code must follow the procedures in the Tax Code to reinstate its certificate of formation.
§ 11.301. INVOLUNTARY WINDING UP AND TERMINATION OF FILING ENTITY BY COURT ACTION.
(C) termination is necessary to prevent future felonious conduct of the same character.
(b) §§ 11.302-11.307 do not apply to Subsection (a)(5).
§ 11.302. NOTIFICATION OF CAUSE BY SECRETARY OF STATE.
(2) the facts relating to the cause for the winding up and termination.
(b) When notice is provided under Subsection (a), the secretary of state shall notify the filing entity of the circumstances by writing sent to the entity at its registered office in this state. The notice must state that the secretary of state has given notice under Subsection (a) and the grounds for the notification. The secretary of state must record the date a notice required by this subsection is sent.
(c) A court shall accept a certificate issued by the secretary of state as to the facts relating to the cause for the winding up and termination and the sending of a notice under Subsection (b) as prima facie evidence of the facts stated in the certificate and the sending of the notice.
§ 11.303. FILING OF ACTION BY ATTORNEY GENERAL.
(2) the attorney general determines that cause exists for the involuntary winding up of a filing entity's business and termination of the entity's existence under § 11.301.
§ 11.304. CURE BEFORE FINAL JUDGMENT.
§ 11.305. JUDGMENT REQUIRING WINDING UP AND TERMINATION.
(2) subject to § 11.306, enter a judgment not earlier than the fifth day after the date the court makes its findings.
§ 11.306. STAY OF JUDGMENT.
(a) If, in an action brought under this subchapter, a filing entity has proved by a preponderance of the evidence and obtained a finding that the problems for which the filing entity has been found guilty were not wilful or the result of a failure to take reasonable precautions, the entity may make a sworn application to the court for a stay of entry of the judgment to allow the filing entity a reasonable opportunity to cure the problems for which it has been found guilty. An application made under this subsection must be made not later than the fifth day after the date the court makes its findings under § 11.305.
(c) A court shall stay an entry of judgment under Subsection (b) for the period the court determines is reasonably necessary to afford the filing entity the opportunity to cure its problems if the entity acts with reasonable diligence. The court may not stay the entry of the judgment for longer than 60 days after the date the court's findings are made.
(d) The court shall dismiss an action against a filing entity that, during the period the action is stayed by the court under this section, cures the problems for which winding up and termination is sought and pays all costs accrued in the action.
(e) If a court finds that a filing entity has not cured the problems for which winding up and termination is sought within the period prescribed by Subsection (c), the court shall enter final judgment requiring a winding up of the filing entity's business.
§ 11.307. OPPORTUNITY FOR CURE AFTER AFFIRMATION OF FINDINGS BY APPEALS COURT.
(4) the filing entity has prayed for the opportunity to cure its problems in the appeal.
(b) The appellate court shall determine the period, which may not be longer than 60 days after the date the case is remanded to the trial court, to be afforded to a filing entity to enable the filing entity to cure its problems under Subsection (a).
(c) The trial court to which an action against a filing entity has been remanded under this § shall dismiss the action if, during the period prescribed by the appellate court for that conduct, the filing entity cures the problems for which winding up and termination is sought and pays all costs accrued in the action.
(d) If a filing entity has not cured the problems for which winding up and termination is sought within the period prescribed by the appellate court under Subsection (b), the judgment requiring winding up and termination shall become final.
§ 11.308. JURISDICTION AND VENUE.
(b) A district court described by Subsection (a) has jurisdiction of the action for involuntary winding up and termination.
§ 11.309. PROCESS IN STATE ACTION.
Citation in an action for the involuntary winding up and termination of a filing entity under this subchapter shall be issued and served as provided by law.
§ 11.310. PUBLICATION OF NOTICE.
(c) The attorney general may include in one published notice the name of each filing entity against which an action for involuntary winding up and termination is pending in the same court.
(d) Not later than the 10th day after the date notice under this § is first published, the attorney general shall send a copy of the notice to the filing entity at the filing entity's registered office in this state. A certificate from the attorney general regarding the sending of the notice is prima facie evidence that notice was sent under this section.
(e) Unless a filing entity has been served with citation, a default judgment may not be taken against the entity before the 31st day after the date the notice is first published.
§ 11.311. ACTION ALLOWED AFTER EXPIRATION OF FILING ENTITY'S DURATION.
The expiration of a filing entity's period of duration does not, by itself, create a vested right on the part of an owner or creditor of the filing entity to prevent an action by the attorney general for the involuntary winding up of the filing entity's business and termination of the filing entity's existence.
§ 11.312. COMPLIANCE BY TERMINATED ENTITY.
(2) Subchapter B to the extent it does not conflict with the decree.
§ 11.313. TIMING OF TERMINATION.
(2) on completion of the winding up process.
§ 11.314. INVOLUNTARY WINDING UP AND TERMINATION OF PARTNERSHIP OR LIMITED LIABILITY COMPANY.
(3) it is not reasonably practicable to carry on the entity's business in conformity with its governing documents.
§ 11.315. FILING OF DECREE OF TERMINATION AGAINST FILING ENTITY.
(a) The clerk of a court that enters a decree terminating the existence of a filing entity shall file a certified copy of the decree in accordance with Chapter 4.
(c) Subject to § 11.356, the existence of the filing entity ceases when the certified copy of the decree is filed in accordance with Chapter 4.
§ 11.351. LIABILITY OF TERMINATED FILING ENTITY.
A terminated filing entity is liable only for an existing claim.
§ 11.352. DEPOSIT WITH COMPTROLLER OF AMOUNT DUE OWNERS AND CREDITORS WHO ARE UNKNOWN OR CANNOT BE LOCATED.
(a) On the voluntary or involuntary termination of a domestic filing entity, the portion of the entity's assets distributable to creditors or owners who are unknown or cannot be found after the exercise of reasonable diligence by a person responsible for the distribution in liquidation of the domestic filing entity's assets must be reduced to cash and deposited as provided by Subsection (b).
(3) other information about each person who is entitled to all or part of the money as the comptroller may reasonably require.
(c) The comptroller shall issue a receipt for money received under this section.
§ 11.353. DISCHARGE OF LIABILITY OF PERSON RESPONSIBLE FOR LIQUIDATION.
A person responsible for the distribution in liquidation of a filing entity's assets will be released and discharged from further liability with respect to money received from the liquidation when the person deposits the money with the comptroller under § 11.352.
§ 11.354. PAYMENT FROM ACCOUNT BY COMPTROLLER.
(a) To claim money deposited in an account under § 11.352, a person must submit to the comptroller satisfactory written proof of the person's right to the money not later than the seventh anniversary of the date the money was deposited with the comptroller.
(b) The comptroller shall issue a warrant drawn on the account created under § 11.352 in favor of a person who meets the requirements for making a claim under Subsection (a) and in the amount to which the person is entitled.
§ 11.355. NOTICE OF ESCHEAT; ESCHEAT.
(a) If no claimant has made satisfactory proof of a right to the money within the period prescribed by § 11.354(a), the comptroller shall publish in one issue of a newspaper of general circulation in Travis County a notice of the proposed escheat of the money.
(3) the name of the terminated filing entity from whose assets the money was derived.
(c) If no claimant makes satisfactory proof to the comptroller of a right to the money before the 61st day after the date notice under this § is published, the money automatically escheats to and becomes the property of the state and shall be deposited in the general revenue fund.
§ 11.356. LIMITED SURVIVAL AFTER TERMINATION.
(5) settling affairs not completed before termination.
(b) A terminated filing entity may not continue its existence for the purpose of continuing the business or affairs for which the terminated filing entity was formed unless the terminated filing entity is reinstated under Subchapter E.
(2) the application or distribution of any property of the terminated filing entity as provided by § 11.053 until the property has been applied or distributed.
§ 11.357. GOVERNING PERSONS OF ENTITY DURING LIMITED SURVIVAL.
(2) may include successors to governing persons chosen by the other governing persons.
(2) is liable to the terminated filing entity for the person's actions taken after the entity's termination to the same extent that the person would have been liable had the person taken those actions before the termination.
§ 11.358. ACCELERATED PROCEDURE FOR EXISTING CLAIM RESOLUTION.
(a) A terminated filing entity may shorten the period for resolving a person's existing claim against the entity by giving notice by registered or certified mail, return receipt requested, to the claimant at the claimant's last known address that the claim must be resolved under this section.
(4) be accompanied by a copy of this section.
(c) To assert a claim, a person who is notified by a terminated filing entity that the person's claim must be resolved under this § must present the claim in writing to the terminated filing entity at the address given by the entity in the notice.
(2) be received by the terminated filing entity not later than the date specified in the notice under Subsection (b)(3).
(e) If a person presents a claim that meets the requirements of this section, the terminated filing entity to whom the claim is presented may give written notice to the person that the claim is rejected by the terminated entity.
(4) state the date on which notice of the claim's rejection was mailed and the effective date of the entity's termination.
§ 11.359. EXTINGUISHMENT OF EXISTING CLAIM.
(a) Except as provided by Subsection (b), an existing claim by or against a terminated filing entity is extinguished unless an action or proceeding is brought on the claim not later than the third anniversary of the date of termination of the entity.
(B) the third anniversary of the effective date of the entity's termination.
A receiver may be appointed for a domestic entity or for a domestic entity's property or business only as provided for and on the conditions set forth in this code.
§ 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 § 11.403.
(2) order the liquidation of the property and business of a domestic entity and appoint a receiver to effect that liquidation as provided by § 11.405.
§ 11.403. APPOINTMENT OF RECEIVER FOR SPECIFIC PROPERTY.
(5) in which receivers for specific property have been previously appointed by courts of equity.
(4) the court determines that other available legal and equitable remedies are inadequate.
(c) The court appointing a receiver under this § has and shall retain exclusive jurisdiction over the specific property placed in receivership. The court shall determine the rights of the parties in the property or its proceeds.
(d) If the condition necessitating the appointment of a receiver under this § is remedied, the receivership shall be terminated immediately, and the receiver shall redeliver to the domestic entity all of the property remaining in receivership.
§ 11.404. APPOINTMENT OF RECEIVER TO REHABILITATE DOMESTIC ENTITY.
(3) in an action other than an action described by Subdivision (1) or (2), courts of equity have traditionally appointed a receiver.
(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 § 11.402(a), are inadequate.
(c) If the condition necessitating the appointment of a receiver under this § is remedied, the receivership shall be terminated immediately, the management of the domestic entity shall be restored to its managerial officials, and the receiver shall redeliver to the domestic entity all of its property remaining in receivership.
§ 11.405. APPOINTMENT OF RECEIVER TO LIQUIDATE DOMESTIC ENTITY; LIQUIDATION.
(5) on application of a member or director of a nonprofit corporation or cooperative association and it appears the entity is unable to carry out its purposes.
(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 and appointment of a receiver to rehabilitate the domestic entity, are inadequate.
§ 11.406. RECEIVERS: QUALIFICATIONS, POWERS, AND DUTIES.
(B) may increase or diminish at any time during the proceedings.
(b) To be appointed a receiver under this chapter, a foreign entity must be registered to transact business in this state.
§ 11.407. COURT-ORDERED FILING OF CLAIMS.
(a) In a proceeding involving a receivership of the property or business of a domestic entity, the court may require all claimants of the domestic entity to file with the clerk of the court or the receiver, in the form provided by the court, proof of their respective claims under oath.
(2) prescribe the notice that shall be given to claimants of the date set under Subdivision (1).
(c) Before the expiration of the period under Subsection (b) for the filing of claims, a court may extend the period for the filing of claims to a later date.
(d) A court may bar a claimant who fails to file a proof of claim during the period authorized by the court from participating in the distribution of the property of the domestic entity unless the claimant presents to the court a justifiable excuse for its delay in filing. A court may not order or effect a discharge of a claim of the claimant described by this subsection.
§ 11.408. SUPERVISING COURT; JURISDICTION; AUTHORITY.
(2) direct the payment of a receiver or attorney from the property of the domestic entity that is within the scope of the receivership or the proceeds of any sale or disposition of that property.
(b) A court that appoints a receiver under this subchapter for the property or business of a domestic entity has exclusive jurisdiction over the domestic entity and all of its property, regardless of where the property is located.
§ 11.409. ANCILLARY RECEIVERSHIPS OF FOREIGN ENTITIES.
(a) Notwithstanding any provision of this code to the contrary, a district court in the county in which the registered office of a foreign entity doing business in this state is located has jurisdiction to appoint an ancillary receiver for the property and business of that entity when the court determines that circumstances exist to require the appointment of an ancillary receiver.
(b) A receiver appointed under Subsection (a) serves ancillary to a receiver acting under orders of an out-of-state court that has jurisdiction to appoint a receiver for the entity.
§ 11.410. RECEIVERSHIP FOR ALL PROPERTY AND BUSINESS OF FOREIGN ENTITY.
(a) A district court may appoint a receiver for all of the property, in and outside this state, of a foreign entity doing business in this state and its business if the court determines, in accordance with the ordinary usages of equity, that circumstances exist that necessitate the appointment of a receiver even if a receiver has not been appointed by another court.
(b) The appointing court shall convert a receivership created under Subsection (a) into an ancillary receivership if the appointing court determines an ancillary receivership is appropriate because a court in another state has ordered a receivership of all property and business of the entity.
§ 11.411. GOVERNING PERSONS AND OWNERS NOT NECESSARY PARTIES DEFENDANT.
Governing persons and owners or members of a domestic entity are not necessary parties to an action for a receivership or liquidation of the property and business of a domestic entity unless relief is sought against those persons individually.
§ 11.412. DECREE OF INVOLUNTARY TERMINATION.
(2) if the entity's property is not sufficient to discharge the costs and other expenses of the action and all obligations and liabilities of the entity, when all the property of the entity has been applied toward their payment.
§ 11.413. SUPPLEMENTAL PROVISIONS FOR APPLICATION OF PROCEEDS FROM LIQUIDATION OF NONPROFIT CORPORATION.
(2) make adequate provision for the payment, satisfaction, and discharge of the costs, expenses, liabilities, or obligations described by Subdivision (1).
(b) Any property remaining after application is made under this § must be applied and distributed in the manner provided by § 22.304.
§ 11.414. FILING OF DECREE OF INVOLUNTARY TERMINATION AGAINST FILING ENTITY.
(a) The clerk of a court that enters a decree terminating the existence of a filing entity under this subchapter shall file a certified copy of the decree in accordance with Chapter 4.

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 § 22

§ 11