Source: https://chowinslaw.com/resources/texas-business-laws/306-public-benefit-corporations-texas-business-organizations
Timestamp: 2019-04-23 04:45:01+00:00

Document:
§ 21.951. LAW APPLICABLE TO PUBLIC BENEFIT CORPORATIONS; FORMATION.
(a) A for-profit corporation may elect under § 3.007(e) to be a public benefit corporation that is governed by this subchapter.
(b) If a corporation elects to be a public benefit corporation, the corporation is subject to the other provisions of this chapter and other provisions of this code applicable to for-profit corporations.
(c) To the extent of a conflict between this subchapter and another provision of this chapter or another provision of this code applicable to for-profit corporations, this subchapter controls.
(1) "Public benefit" means a positive effect, or a reduction of a negative effect, on one or more categories of persons, entities, communities, or interests, other than shareholders in their capacities as shareholders of the corporation, including effects of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific, or technological nature.
(2) "Public benefit corporation" means a domestic for-profit corporation that elects under § 3.007(e) to be a public benefit corporation governed by this subchapter.
(3) "Public benefit provisions" means the provisions of a certificate of formation that are required by § 3.007(e) and this subchapter.
§ 21.953. PURPOSE OF PUBLIC BENEFIT CORPORATION; NAME OF CORPORATION.
(a) A public benefit corporation is a domestic for-profit corporation that is intended to produce a public benefit or benefits and to operate in a responsible and sustainable manner.
(3) the public benefit or benefits specified in the corporation's certificate of formation.
(2) who acquires the treasury shares.
(2) at the time of the issuance or disposal of shares described by that subsection, the corporation has a class of securities registered under the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.).
(e) § 5.054(a) does not apply to a public benefit corporation that includes in its name the words, abbreviation, or designation permitted by Subsection (c).
§ 21.954. CERTAIN AMENDMENTS, MERGERS, EXCHANGES, AND CONVERSIONS; VOTER APPROVAL REQUIRED.
(3) convert into a foreign public benefit corporation or similar entity.
(b) Subsection (a) does not apply until the corporation has issued and outstanding shares of the corporation's capital stock.
(2) convert into a domestic or foreign public benefit corporation or similar entity.
(B) that does not contain in its certificate of formation or similar governing document provisions identical to the provisions in the certificate of formation of the public benefit corporation containing the public benefit or benefits specified under § 3.007(e) or imposing requirements under § 21.957(c).
(2) convert into a public benefit corporation.
(f) An owner of a domestic entity affected by an action described by this § has the rights of dissent and appraisal as an owner described by § 10.354 and to the extent provided by Subchapter H, Chapter 10.
§ 21.955. STOCK CERTIFICATES; NOTICES REGARDING UNCERTIFICATED STOCK.
(a) A stock certificate issued by a public benefit corporation must note conspicuously that the corporation is a public benefit corporation governed by this subchapter.
(b) A notice sent by a public benefit corporation under § 3.205 must state conspicuously that the corporation is a public benefit corporation governed by this subchapter.
§ 21.956. DUTIES OF DIRECTORS.
(3) the specific public benefit or benefits specified in the corporation's certificate of formation.
(2) any interest materially affected by the corporation's conduct.
(c) With respect to a decision implicating the balance requirement of Subsection (a), a director of a public benefit corporation is considered to have satisfied the director's duties to shareholders and the corporation if the director's decision is both informed and disinterested and is not a decision that no person of ordinary, sound judgment would approve.
(d) The certificate of formation of a public benefit corporation may include a provision that any disinterested failure of a director to satisfy the requirements of this § does not, for the purposes of the applicable provisions of this code, constitute an act or omission not in good faith or a breach of the duty of loyalty.
(a) A public benefit corporation shall include in each notice of a meeting of shareholders a statement to the effect that the corporation is a public benefit corporation governed by this subchapter.
(4) an assessment of the corporation's success in meeting the objectives and promoting the public benefit or benefits and interests.
(2) make the statement required by Subsection (b) available to the public.
(B) shares whose market value is at least $2 million.
(b) A shareholder of a public benefit corporation may maintain a derivative action on behalf of the corporation to enforce compliance with the requirements of § 21.956(a).
§ 21.959. NO EFFECT ON OTHER CORPORATIONS.
Except as provided by § 21.954, this subchapter does not apply to a corporation that is not a public benefit corporation.

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