Source: https://chowinslaw.com/resources/texas-business-laws/275-texas-business-organizations-general-provisions
Timestamp: 2019-04-23 03:57:17+00:00

Document:
(1) "Affiliate" means a person who controls, is controlled by, or is under common control with another person.
(D) a governing person or an affiliate or officer of the person.
(3) "Association" means an entity governed as an association under Title 6 or 7. The term includes a cooperative association, nonprofit association, and professional association.
(4) "Assumed name" means a name adopted for use by a person. The term includes an assumed name filed under Chapter 71, Business & Commerce Code.
(5) "Business" means a trade, occupation, profession, or other commercial activity.
(B) if appropriate, a restated certificate of formation and all amendments of an original or restated certificate of formation.
(7) "Certificated ownership interest" means an ownership interest of a domestic entity represented by a certificate issued in bearer or registered form.
(8) "Close corporation" means a for-profit corporation that elects to be governed as a close corporation in accordance with Subchapter O, Chapter 21.
(B) that the person intends to be a loan to the entity.
(E) the continuance of a foreign entity of one type as a domestic entity of the same type that may be treated as a domestication, continuance, or transfer transaction under the laws of the jurisdiction of formation of the foreign entity.
(11) "Converted entity" means an organization resulting from a conversion.
(12) "Converting entity" means an organization as the organization existed before the organization's conversion.
(13) "Cooperative" or "cooperative association" means an association governed as a cooperative association under Chapter 251.
(14) "Corporation" means an entity governed as a corporation under Title 2 or 7. The term includes a for-profit corporation, nonprofit corporation, and professional corporation.
(ii) federal or state law governing insolvency.
(16) "Director" means an individual who serves on the board of directors of a foreign or domestic corporation.
(17) "Domestic" means, with respect to an entity, that the entity is formed under this code or the entity's internal affairs are governed by this code.
(18) "Domestic entity" means an organization formed under or the internal affairs of which are governed by this code.
(19) ""Domestic entity subject to dissenters' rights" means a domestic entity the owners of which have rights of dissent and appraisal under this code or the governing documents of the entity.
(20) "Effective date of this code" means January 1, 2006. The applicability of this code is governed by Title 8.
(C) may be directly reproduced in paper form by the recipient through an automated process.
(21) "Entity" means a domestic entity or foreign entity.
(B) under which the foreign filing entity is registered to transact business in this state, in accordance with Chapter 9.
(22) "Filing entity" means a domestic entity that is a corporation, limited partnership, limited liability company, professional association, cooperative, or real estate investment trust.
(23) "Filing instrument" means an instrument, document, consent, or statement that is required or authorized by this code to be filed by or for an entity with the filing officer in accordance with Chapter 4.
(B) with respect to a domestic real estate investment trust, the county clerk of the county in which the real estate investment trust's principal office is located in this state.
(25) "For-profit corporation" means a corporation governed as a for-profit corporation under Chapter 21.
(26) "For-profit entity" means an entity other than a nonprofit entity.
(27) "Foreign" means, with respect to an entity, that the entity is formed under, and the entity's internal affairs are governed by, the laws of a jurisdiction other than this state.
(28) "Foreign entity" means an organization formed under, and the internal affairs of which are governed by, the laws of a jurisdiction other than this state.
(29) "Foreign filing entity" means a foreign entity, other than a foreign limited liability partnership, that registers or is required to register as a foreign entity under Chapter 9.
(30) "Foreign governmental authority" means a governmental official, agency, or instrumentality of a jurisdiction other than this state.
(31) "Foreign nonfiling entity" means a foreign entity that is not a foreign filing entity.
(32) "Fundamental business transaction" means a merger, interest exchange, conversion, or sale of all or substantially all of an entity's assets.
(B) a person who is admitted to a limited partnership as a general partner in accordance with the governing documents of the limited partnership.
(34) "General partnership" means a partnership governed as a general partnership under Chapter 152. The term includes a general partnership registered as a limited liability partnership.
(vi) the trust managers of a real estate investment trust.
(B) The term does not include an officer who is acting in the capacity of an officer.
(B) in the case of a foreign entity, the instruments, documents, or agreements adopted under the law of its jurisdiction of formation to govern the formation or the internal affairs of the entity.
(37) "Governing person" means a person serving as part of the governing authority of an entity.
(38) "Individual" means a natural person.
(39) "Insolvency" means the inability of a person to pay the person's debts as they become due in the usual course of business or affairs.
(40) "Insolvent" means a person who is unable to pay the person's debts as they become due in the usual course of business or affairs.
(41) "Interest exchange" means the acquisition of an ownership or membership interest in a domestic entity as provided by Subchapter B, Chapter 10. The term does not include a merger or conversion.
(42) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended. The term includes corresponding provisions of subsequent federal tax laws.
(ii) if Subparagraph (i) does not apply, the jurisdiction in which the entity has its chief executive office.
(44) "Law" means, unless the context requires otherwise, both statutory and common law.
(45) "License" means a license, certificate of registration, or other legal authorization.
(46) "Limited liability company" means an entity governed as a limited liability company under Title 3 or 7. The term includes a professional limited liability company.
(47) "Limited liability limited partnership" means a partnership governed as a limited liability partnership and a limited partnership under Title 4.
(48) "Limited liability partnership" means a partnership governed as a limited liability partnership under Title 4.
(B) in the case of a foreign limited partnership, the laws of its jurisdiction of formation.
(50) "Limited partnership" means a partnership that is governed as a limited partnership under Title 4 and that has one or more general partners and one or more limited partners. The term includes a limited partnership registered as a limited liability limited partnership.
(51) "Manager" means a person designated as a manager of a limited liability company that is not managed by members of the company.
(52) "Managerial official" means an officer or a governing person.
(E) in the case of a professional association, a person who has membership rights in the professional association under its governing documents.
(54) "Membership interest" means a member's interest in an entity. With respect to a limited liability company, the term includes a member's share of profits and losses or similar items and the right to receive distributions, but does not include a member's right to participate in management.
(iii) one or more surviving domestic entities or non-code organizations and the creation of one or more new domestic entities or non-code organizations.
(55-a) "National securities exchange" means an exchange registered as a national securities exchange under § 6, Securities Exchange Act of 1934 (15 U.S.C. § 78f).
(56) "Non-code organization" means an organization other than a domestic entity.
(56-a) "Non-United States entity" means a foreign entity formed under, and the internal affairs of which are governed by, the laws of a non-United States jurisdiction.
(56-b) "Non-United States jurisdiction" means a foreign country or other foreign jurisdiction that is not the United States or a state of the United States.
(57) "Nonfiling entity" means a domestic entity that is not a filing entity. The term includes a domestic general partnership and nonprofit association.
(58) "Nonprofit association" means an association governed as a nonprofit association under Chapter 252.
(59) "Nonprofit corporation" means a corporation governed as a nonprofit corporation under Chapter 22.
(60) "Nonprofit entity" means an entity that is a nonprofit corporation, nonprofit association, or other entity that is organized solely for one or more of the purposes specified by § 2.002.
(61) "Officer" means an individual elected, appointed, or designated as an officer of an entity by the entity's governing authority or under the entity's governing documents.
(62) "Organization" means a corporation, limited or general partnership, limited liability company, business trust, real estate investment trust, joint venture, joint stock company, cooperative, association, bank, insurance company, credit union, savings and loan association, or other organization, regardless of whether the organization is for-profit, nonprofit, domestic, or foreign.
(D) with respect to another foreign or domestic entity, an owner of an equity interest in that entity.
(B) by a governing document of an organization under a provision of this code or the law of the organization's jurisdiction of formation that authorizes the governing document to make one or more specified owners or members of the organization liable in their capacity as owners or members for all or specified liabilities or other obligations of the organization.
(64) "Ownership interest" means an owner's interest in an entity. The term includes the owner's share of profits and losses or similar items and the right to receive distributions. The term does not include an owner's right to participate in management.
(B) possesses at least 50 percent of the voting power of the owners or members of another organization.
(66) "Partner" means a limited partner or general partner.
(67) "Partnership" means an entity governed as a partnership under Title 4.
(68) "Partnership interest" means a partner's interest in a partnership. The term includes the partner's share of profits and losses or similar items and the right to receive distributions. The term does not include a partner's right to participate in management.
(69) "Party to the merger" means a domestic entity or non-code organization that under a plan of merger is divided or combined by a merger. The term does not include a domestic entity or non-code organization that is not to be divided or combined into or with one or more domestic entities or non-code organizations, regardless of whether ownership interest of the entity are to be issued under the plan of merger.
(ii) a period specified to be perpetual.
(69-b) "Person" means an individual or a corporation, partnership, limited liability company, business trust, trust, association, or other organization, estate, government or governmental subdivision or agency, or other legal entity, or a series of a domestic limited liability company or foreign entity.
(69-c) "Plan of conversion" means a document that conforms with the requirements of § 10.103.
(69-d) "Plan of exchange" means a document that conforms with the requirements of § 10.052.
(69-e) "Plan of merger" means a document that conforms with the requirements of §§ 10.002 and 10.003.
(B) officer or committee of persons authorized to perform the functions of the principal executive officer of an entity without regard to the designated name of the officer or committee.
(71) "Professional association" has the meaning assigned by § 301.003.
(72) "Professional corporation" has the meaning assigned by § 301.003.
(73) "Professional entity" has the meaning assigned by § 301.003.
(74) "Professional individual" has the meaning assigned by § 301.003.
(75) "Professional limited liability company" has the meaning assigned by § 301.003.
(76) "Professional service" has the meaning assigned by § 301.003.
(77) "Property" includes tangible and intangible property and an interest in that property.
(78) "Real estate investment trust" means an entity governed as a real estate investment trust under Title 5.
(B) officer or committee of persons authorized to perform the functions of secretary of an entity without regard to the designated name of the officer or committee.
(80) "Share" means a unit into which the ownership interest in a for-profit corporation, professional corporation, real estate investment trust, or professional association is divided, regardless of whether the share is certificated or uncertificated.
(B) the beneficial owner of shares issued by a for-profit corporation, whose shares are held in a voting trust or by a nominee on the beneficial owner's behalf, to the extent of the rights granted by a nominee statement on file with the for-profit corporation in accordance with §§ 21.201(b) and (c).
(82) "Signature" means any symbol executed or adopted by a person with present intention to authenticate a writing. Unless the context requires otherwise, the term includes a digital signature, an electronic signature, and a facsimile of a signature.
(G) conferring any particular benefit on society or the environment.
(83) "Subscriber" means a person who agrees with or makes an offer to an entity to purchase by subscription an ownership interest in the entity.
(84) "Subscription" means an agreement between a subscriber and an entity, or a written offer made by a subscriber to an entity before or after the entity's formation, in which the subscriber agrees or offers to purchase a specified ownership interest in the entity.
(B) possesses at least 50 percent of the voting power of the owners or members of the organization.
(B) officer or committee of persons authorized to perform the functions of treasurer of an entity without regard to the designated name of the officer or committee.
(B) registration on books maintained by or on behalf of the entity for the purpose of registering transfers of ownership interests.
(B) officer or committee of persons authorized to perform the functions of the president of the entity on the death, absence, or resignation of the president or on the inability of the president to perform the functions of office without regard to the designated name of the officer or committee.
(B) does not include sound or video recordings of speech other than transcriptions that are otherwise writings.
(2) does not have a material financial interest in the outcome of the contract or transaction or the disposition of the claim or challenge.
(B) the person, acting as a governing person, approved, voted for, or acquiesced in the act being challenged if the act did not result in a material personal or financial benefit to the person and the challenging party fails to allege particular facts that, if true, raise a significant prospect that the governing person would be held liable to the entity or its owners or members as a result of the conduct.
(4) is not shown, by a preponderance of the evidence, to be under the controlling influence of a party to the contract or transaction that is the subject of the claim or challenge or of a person who is alleged to have engaged in the conduct that is the subject of the claim or challenge.
(6) the person, an associate of the person, other than the entity or its associates, or an immediate family member has a continuing business relationship with the entity that is not material to the person, associate, or family member.
In this code, required information is conspicuous if the information is placed in a manner or displayed using a font that provides or should provide notice to a reasonable person affected by the information. Required information in a document is conspicuous if the font used for the information is capitalized, boldfaced, italicized, or underlined or is larger or of a different color than the remainder of the document.
(17) a reference to "business corporation" includes a "for-profit corporation."
§ 1.007. SIGNING OF DOCUMENT OR OTHER WRITING.
For purposes of this code, a writing has been signed by a person when the writing includes, bears, or incorporates the person's signature. A transmission or reproduction of a writing signed by a person is considered signed by that person for purposes of this code.
(a) The provisions of this code as described by this § may be cited as provided by this §.
(b) The provisions of Title 2 and the provisions of Title 1 to the extent applicable to corporations may be cited as the "Texas Corporation Law."
(c) The provisions of Chapters 20 and 21 and the provisions of Title 1 to the extent applicable to for-profit corporations may be cited as the "Texas For-Profit Corporation Law."
(d) The provisions of Chapters 20 and 22 and the provisions of Title 1 to the extent applicable to nonprofit corporations may be cited as the "Texas Nonprofit Corporation Law."
(e) The provisions of Title 3 and the provisions of Title 1 to the extent applicable to limited liability companies may be cited as the "Texas Limited Liability Company Law."
(f) The provisions of Chapters 151, 152, and 154 and the provisions of Title 1 to the extent applicable to general partnerships may be cited as the "Texas General Partnership Law."
(g) The provisions of Chapters 151, 153, and 154 and the provisions of Title 1 and Chapter 152 to the extent applicable to limited partnerships may be cited as the "Texas Limited Partnership Law."
(h) The provisions of Title 5 and the provisions of Title 1 and Chapters 20 and 21 to the extent applicable to real estate investment trusts may be cited as the "Texas Real Estate Investment Trust Law."
(i) The provisions of Chapter 251 and the provisions of Title 1 and Chapters 20 and 22 to the extent applicable to cooperative associations may be cited as the "Texas Cooperative Association Law."
(j) The provisions of Title 7 and the provisions of Titles 1, 2, and 3 to the extent applicable to professional entities may be cited as the "Texas Professional Entities Law."
(k) The provisions of Chapter 252 may be cited as the "Uniform Unincorporated Nonprofit Association Act."
(l) The provisions of Chapters 301 and 302 and the provisions of Chapters 20 and 21 and Title 1 to the extent applicable to professional associations may be cited as the "Texas Professional Association Law."
(m) The provisions of Chapters 301 and 303 and the provisions of Chapters 20 and 21 and Title 1 to the extent applicable to professional corporations may be cited as the "Texas Professional Corporation Law."
(n) The provisions of Chapters 301 and 304 and the provisions of Titles 1 and 3 to the extent applicable to professional limited liability companies may be cited as the "Texas Professional Limited Liability Company Law."
§ 1.009. DOLLARS AS MONETARY UNITS.
Unless the context requires otherwise, a value or amount that is required by this code to be stated in monetary terms must be stated in United States dollars. Currency that is not specified is considered to be in United States dollars.
§ 1.051. CONSTRUCTION OF CODE.
Chapter 311, Government Code (Code Construction Act), applies to the construction of each provision in this code except as otherwise expressly provided by this code.
§ 1.052. REFERENCE IN LAW TO STATUTE REVISED BY CODE.
A reference in a law to a statute or a part of a statute revised by this code is considered to be a reference to the part of this code that revises that statute or part of that statute.
§ 1.053. APPLICABILITY TO FOREIGN AND INTERSTATE AFFAIRS.
This code applies to the conduct of affairs with foreign countries and the other states of the United States only to the extent permitted under the United States Constitution.
§ 1.054. RESERVATION OF POWER.
The legislature at all times has the power to amend, repeal, or modify this code and to prescribe regulations, provisions, and limitations as the legislature considers advisable. The regulations, provisions, and limitations are binding on any entity subject to this code.
§ 1.101. DOMESTIC FILING ENTITIES.
The law of this state governs the formation and internal affairs of an entity if the entity's formation occurs when a certificate of formation filed in accordance with Chapter 4 takes effect.
§ 1.102. FOREIGN FILING ENTITIES.
If the formation of an entity occurs when a certificate of formation or similar instrument filed with a foreign governmental authority takes effect, the law of the state or other jurisdiction in which that foreign governmental authority is located governs the formation and internal affairs of the entity.
§ 1.103. ENTITIES NOT FORMED BY FILING INSTRUMENT.
If the formation of an entity does not occur when a certificate of formation or similar instrument filed with the secretary of state or with a foreign governmental authority takes effect, the law governing the entity's formation and internal affairs is the law of the entity's jurisdiction of formation.
§ 1.104. LAW APPLICABLE TO LIABILITY.
The law of the jurisdiction that governs an entity as determined under §§ 1.101-1.103 applies to the liability of an owner, a member, or a managerial official of the entity in the capacity as an owner, a member, or a managerial official for an obligation, including a debt or other liability, of the entity for which the owner, member, or managerial official is not otherwise liable by contract or under provisions of law other than this code.
(2) matters relating to its membership or ownership interests.
§ 1.106. ORDER OF PRECEDENCE.
(a) This title applies to all domestic entities and foreign entities to the extent provided by this title.
(b) Each title of this code, other than this title, applies to a different type of entity to the extent provided by that title.
(c) If a provision of this title conflicts with a provision in another title of this code, the provision of the other title supersedes the provision of this title.

References: § 6
 § 78
 § 2
 § 10
 § 10
 § 301
 § 301
 § 301
 § 301
 § 301
 § 301

§ 1

§ 1

§ 1

§ 1

§ 1

§ 1

§ 1

§ 1

§ 1

§ 1

§ 1