• The Sun Sets on the Texas Business Corporation Act
  • January 15, 2010 | Authors: George E. "Ned" Crady; Juan-Pablo Crespo; Kenneth S. Culotta; Denis A. (Archie) Fallon
  • Law Firm: King & Spalding LLP - Houston Office
  • On January 1, 2010, the Texas Business Organizations Code (TBOC or the Code) became the exclusive statute governing foreign and domestic business organizations in Texas. Business organizations which were formed in Texas prior to January 1, 2006, or foreign companies that obtained authority to do business in Texas prior to January 1, 2006, which were previously operating under the Texas Business Corporations Act (TBCA) or another similar governance statutes, have now automatically become subject to the TBOC, unless they previously elected to become governed by the TBOC. This Client Alert will (i) summarize the purpose and format of the TBOC and (ii) provide practice pointers for avoiding problems related to the transition to the TBOC.