Texas Business Organizations Code 12.257 – Dismissal of Action
Current as of: 2024 | Check for updates
|
Other versions
(a) A suit authorized by § 12.253 or 12.258 may not be filed or, if filed, shall be dismissed if the entity, through its owners or members, reduces its indebtedness so that it is not insolvent.
(b) The respondent shall pay the costs of a dismissed suit under this section.
Terms Used In Texas Business Organizations Code 12.257
- Entity: means a domestic entity or foreign entity. See Texas Business Organizations Code 1.002
- 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. See Texas Business Organizations Code 1.002
