Source: https://chowinslaw.com/resources/texas-business-laws/301-affiliated-business-combinations-texas-business-organizations
Timestamp: 2019-04-23 04:49:43+00:00

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(C) a class or series of the corporation's voting shares qualified for trading on a national securities exchange.
(2) "Person" includes two or more persons acting as a partnership, limited partnership, syndicate, or other group under an agreement, arrangement, or understanding, regardless of whether in writing, to acquire, hold, vote, or dispose of a corporation's shares.
(3) "Share acquisition date" means the date a person initially becomes an affiliated shareholder of an issuing public corporation.
(4) "Subsidiary" means a domestic or foreign corporation or other entity of which a majority of the outstanding voting shares are owned, directly or indirectly, by an issuing public corporation.
(5) "Voting share" means a share of capital stock of a corporation that entitles the holder of the share to vote generally in the election of directors.
(2) during the preceding three-year period, was the beneficial owner of 20 percent or more of the outstanding voting shares of the issuing public corporation.
(b) To determine whether a person is an affiliated shareholder, the number of voting shares of the issuing public corporation considered outstanding includes shares considered beneficially owned by that person under § 21.603, but does not include other unissued voting shares of the issuing public corporation that may be issuable under an agreement, arrangement, or understanding, or on exercise of conversion rights, warrants, or options.
§ 21.603. BENEFICIAL OWNER OF SHARES OR OTHER SECURITIES.
(3) acquire, hold or dispose of, or vote the shares or other securities with another person who individually, or through an affiliate or associate, beneficially owns, directly or indirectly, the shares or other securities.
(B) would not be reportable on a Schedule 13D under the Securities Exchange Act of 1934 (15 U.S.C. § 77b et seq.), as amended, or a comparable or successor report.
(6) the direct or indirect receipt by an affiliated shareholder or an affiliate or associate of the affiliated shareholder of the benefit of a loan, advance, guarantee, pledge, or other financial assistance or a tax credit or other tax advantage provided by or through the issuing public corporation, except proportionately as a shareholder of the issuing public corporation.
(a) For purposes of this subchapter, a person has control of another person if the person has possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the other person, through the ownership of equity securities, by contract, or in another manner.
(b) A person's beneficial ownership of 10 percent or more of a person's outstanding voting shares or similar interests creates a presumption that the person has control of the other person, but a person is not considered to have control of another person who holds the voting shares or similar interests in good faith and not to circumvent this part, as an agent, bank, broker, nominee, custodian, or trustee for one or more beneficial owners who do not individually or as a group have control of the person.
§ 21.606. THREE-YEAR MORATORIUM ON CERTAIN BUSINESS COMBINATIONS.
(2) the business combination is approved, by the affirmative vote of the holders of at least two-thirds of the outstanding voting shares of the issuing public corporation not beneficially owned by the affiliated shareholder or an affiliate or associate of the affiliated shareholder, at a meeting of shareholders called for that purpose not less than six months after the affiliated shareholder's share acquisition date. Approval may not be by written consent.
§ 21.607. APPLICATION OF MORATORIUM.
(5) a business combination of an issuing public corporation with a domestic wholly owned subsidiary if the domestic subsidiary is not an affiliate or associate of the affiliated shareholder for a reason other than the affiliated shareholder's beneficial ownership of voting shares in the issuing public corporation.
§ 21.608. EFFECT ON OTHER ACTIONS.
(a) This subchapter does not affect, directly or indirectly, the validity of another action by the board of directors of an issuing public corporation.
(b) This subchapter does not preclude the board of directors of an issuing public corporation from taking other action in accordance with law.
(c) The board of directors of an issuing public corporation does not incur liability for an election made or not made under this subchapter.
If this subchapter conflicts with another provision of this code, this subchapter controls.
§ 21.610. CHANGE IN VOTING REQUIREMENTS.
The affirmative vote or concurrence of shareholders required for approval of an action that is required to be submitted to a vote of the shareholders under this subchapter may be increased but not decreased under § 21.365.

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