Source: https://chowinslaw.com/resources/texas-business-laws/308-special-purpose-corporations-texas-business-organizations
Timestamp: 2019-04-23 03:57:00+00:00

Document:
§ 23.001. DETERMINATION OF APPLICABLE LAW.
§ 23.002. APPLICABILITY OF FILING REQUIREMENTS.
Except as otherwise provided by the special statute, a document to be filed with the secretary of state under a special statute shall be executed and filed in accordance with Chapter 4.
§ 23.003. DOMESTIC CORPORATION ORGANIZED UNDER SPECIAL STATUTE.
A corporation organized under a special statute other than this code is not considered a "domestic corporation" formed under this code, although this code may apply to the corporation.
Subject to The Securities Act (Article 581-1 et seq., Vernon's Texas Civil Statutes), 25 or more persons, the majority of whom must be residents of this state, may form a business development corporation to promote, develop, and advance the prosperity and economic welfare of this state.
A corporation organized under this subchapter is a state development company as defined by § 103, Small Business Investment Act of 1958 (15 U.S.C. § 662), as amended, or similar federal legislation, and may operate on a statewide basis.
§ 23.056. CERTIFICATE OF FORMATION.
§ 23.057. MANAGEMENT BY BOARD OF DIRECTORS; NUMBER OF DIRECTORS.
(a) The organization, control, and management of a corporation are vested in a board of directors. The board must consist of not fewer than 15 and not more than 21 directors.
§ 23.058. ELECTION OR APPOINTMENT OF DIRECTORS.
(a) The organizers of a corporation shall name the directors constituting the initial board of directors of the corporation. Directors other than the initial directors shall be elected at each annual meeting of the corporation. If an annual meeting is not held at the time designated by the bylaws of the corporation, the directors shall be elected at a special meeting held in lieu of the annual meeting.
§ 23.059. TERM OF OFFICE; VACANCY.
(a) A director of a corporation holds office until the next annual election of directors and until a successor is elected and qualified, unless the director is removed at an earlier date in accordance with the corporation's bylaws.
The board of directors of a corporation shall appoint a president, a treasurer, and any other agent or officer of the corporation and shall fill each vacancy other than a vacancy on the board.
§ 23.061. PARTICIPATION AS OWNER.
(a) An individual, corporation, or other organization authorized to conduct business in this state, including a public utility company, insurance and casualty company, or foreign corporation licensed to do business in this state, or a trust may acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise dispose of a bond, security, or other evidence of indebtedness created by, or shares of, the corporation.
§ 23.062. FINANCIAL INSTITUTION AS MEMBER OF CORPORATION.
(a) A financial institution may become a member of a corporation and may make loans to the corporation as provided by this chapter.
§ 23.063. WITHDRAWAL OF MEMBER.
(a) On written notice to the corporation's board of directors, a member may withdraw from a corporation on the date stated in the notice. The date of a member's withdrawal must be at least six months after the date notice is given under this subsection.
§ 23.064. POWERS OF SHAREHOLDERS AND MEMBERS.
§ 23.065. VOTING BY SHAREHOLDER OR MEMBER.
(a) Each shareholder of a corporation has one vote, in person or by proxy, for each share held by the shareholder.
(c) A member with a loan limit that exceeds $1,000 has one additional vote, in person or by proxy, for each additional $1,000 the member may have outstanding on loans to the corporation at any one time as determined under § 23.068.
§ 23.066. LOAN TO CORPORATION.
(a) When called on by a corporation to make a loan to the corporation, a member of the corporation shall make the loan on those terms and conditions periodically approved by the board of directors.
(a) A member may not make a loan to a corporation if, immediately after the loan would be made, the total amount of the obligations of the corporation would exceed 50 times the capital of the corporation.
(a) A loan limit shall be established at the $1,000 amount nearest to the amount computed in accordance with this section.
(a) A corporation shall set apart as earned surplus not less than 10 percent of the corporation's net earnings each year until the surplus, with any unimpaired surplus paid in, is equal to one-half of the amount paid in on the shares then outstanding. The surplus shall be kept to secure against losses and contingencies. If the surplus becomes impaired, the surplus shall be reimbursed in the manner provided for its accumulation.
(a) A corporation may deposit the corporation's funds in a banking institution that has been designated as a depository by a vote of the majority of the directors present at an authorized meeting of the board of directors of the corporation, excluding a director who is an officer or director of the designated depository.
§ 23.071. ANNUAL REPORT; PROVISION OF REQUIRED INFORMATION.
(a) A corporation shall annually make a report of its condition to the banking commissioner and the Texas Department of Insurance.
§ 23.102. APPLICABILITY OF CHAPTER 22.
If this subchapter does not contain any provision regarding a matter provided for in Chapter 22, to the extent consistent with this subchapter, Chapter 22 applies to a corporation formed under this subchapter.
A grand body that incorporates under this subchapter may provide in the grand body's certificate of formation for the expiration of its corporate powers at the end of a stated number of years. If the certificate of formation does not provide for the duration of the grand body, the grand body has perpetual existence. The grand body may by its corporate name have perpetual succession of its officers and members.
(a) The incorporation of a grand body includes each of its subordinate lodges or bodies holding a warrant or charter under the grand body.
§ 23.105. TRUSTEES AND DIRECTORS.
A grand body and a subordinate of the grand body may elect trustees and directors or may appoint trustees or directors from among their officers.
A corporation formed under this subchapter is not subject to or required to pay a franchise tax, except that a corporation is exempt from the franchise tax imposed by Chapter 171, Tax Code, only if the corporation is exempted by that chapter.
A grand body and a subordinate of the grand body may take action as directed or provided by law in the case of other corporations and may make constitutions and bylaws to govern their affairs.
§ 23.108. AUTHORITY REGARDING PROPERTY.
(a) A grand body or subordinate body may acquire and hold property as necessary or convenient for a site on which to erect a building for the use and occupancy of the body and to erect homes and schools for members' widows or orphans or elderly, disabled, or indigent members and may sell or mortgage the property.
§ 23.109. AUTHORITY REGARDING LOANS.
§ 23.110. WINDING UP AND TERMINATION OF SUBORDINATE BODY.
(a) On the winding up and termination of a subordinate body attached to a grand body, all property and rights existing in the subordinate body pass to and vest in the grand body to which it was attached, subject to the payment of any debt owed by the subordinate body.

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