2023 Texas Statutes › Estates Code › Title 2 - Estates of Decedents; Durable Powers of Attorney › Subtitle P - Durable Powers of Attorney › Chapter 752 - Statutory Durable Power of Attorney › Subchapter C. Construction of Powers Related to Statutory Durable Power of Attorney › Section 752.107. Business Operation Transactions

Sec. 752.107.  BUSINESS OPERATION TRANSACTIONS.  Subject to the terms of an agreement or other document governing or relating to an entity or entity ownership interest, to the extent the agent is permitted by law to act for the principal and unless the power of attorney provides otherwise, the language conferring authority with respect to business operating transactions in a statutory durable power of attorney empowers the agent to:
(1)  operate, buy, sell, enlarge, reduce, or terminate an ownership interest;
(2)  perform a duty or discharge a liability, or exercise in person or by proxy a right, power, privilege, or option that the principal has, may have, or claims to have;
(3)  enforce the terms of an agreement or other document governing or relating to an entity or entity ownership interest;
(4)  defend, submit to arbitration, settle, or compromise litigation or an action to which the principal is a party because of an entity ownership interest;
(5)  exercise in person or by proxy, or enforce by litigation, action, or otherwise, a right, power, privilege, or option the principal has or claims to have as the holder of a certificated or uncertificated ownership interest;
(6)  defend, submit to alternative dispute resolution, settle, or compromise litigation to which the principal is a party concerning a certificated or uncertificated ownership interest;
(7)  with respect to a business or entity owned solely by the principal:
(A)  continue, modify, renegotiate, extend, and terminate a contract made by or on behalf of the principal with respect to the business or entity;
(B)  determine:
(i)  the location of the business's or entity's operation;
(ii)  the nature and extent of the business;
(iii)  the methods of manufacturing, selling, merchandising, financing, accounting, and advertising employed in the business's or entity's operation;
(iv)  the amount and types of insurance carried; and
(v)  the method of engaging, compensating, and dealing with the business's or entity's employees and accountants, attorneys, or other agents;
(C)  change the name or form of organization under which the business or entity is operated and enter into an agreement with other persons to take over all or part of the operation of the business or entity; and
(D)  demand and receive money due or claimed by the principal or on the principal's behalf in the operation of the business or entity and control and disburse the money in the operation of the business or entity;
(8)  put additional capital into a business or entity in which the principal has an interest;
(9)  join in a plan of reorganization, consolidation, interest exchange, conversion, or merger of the business or entity;
(10)  sell or liquidate a business or entity or all or part of the assets of the business or entity;
(11)  establish the value of a business or entity under a buy-out agreement to which the principal is a party;
(12)   prepare, sign, file, and deliver reports, compilations of information, returns, or other papers with respect to a business or entity and make related payments; and
(13)  pay, compromise, or contest taxes or assessments and perform any other act to protect the principal from illegal or unnecessary taxation, fines, penalties, or assessments with respect to a business or entity, including attempts to recover, in any manner permitted by law, money paid before or after the execution of the power of attorney.
Added by Acts 2011, 82nd Leg., R.S., Ch. 823 (H.B. 2759), Sec. 1.01, eff. January 1, 2014.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 210 (S.B. 1650), Sec. 6, eff. September 1, 2023.