Texas Business Organizations Code 101.503 – Penalty for Refusal to Permit Examination of Certain Records
(a) A limited liability company that refuses to allow a member or an assignee of a membership interest to examine and copy, on written request that complies with § 101.502(a), records or other information described by that section is liable to the member or assignee for any cost or expense, including attorney’s fees, incurred in enforcing the member’s or assignee’s rights under § 101.502. The liability imposed on a limited liability company under this subsection is in addition to any other damages or remedy afforded to the member or assignee by law.
(b) It is a defense to an action brought under this section that the person suing:
(1) has improperly used information obtained through a prior examination of the records or other information of the limited liability company or any other limited liability company, under § 101.502; or
(2) was not acting in good faith or for a proper purpose in making the person’s request for examination.
Terms Used In Texas Business Organizations Code 101.503
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Law: means , unless the context requires otherwise, both statutory and common law. See Texas Business Organizations Code 1.002
- Limited liability company: means an entity governed as a limited liability company under Title 3 or 7. See Texas Business Organizations Code 1.002
- Member: means :
(A) in the case of a limited liability company, a person who has become, and has not ceased to be, a member in the limited liability company as provided by its governing documents or this code;
(B) in the case of a nonprofit corporation, a person who has membership rights in the nonprofit corporation under its governing documents;
(C) in the case of a cooperative association, a member of a nonshare or share association;
(D) in the case of a nonprofit association, a person who has membership rights in the nonprofit association under its governing documents; or
(E) in the case of a professional association, a person who has membership rights in the professional association under its governing documents. See Texas Business Organizations Code 1.002 - Membership interest: means a member's interest in an entity. See Texas Business Organizations Code 1.002
- 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 protected series or registered series of a domestic limited liability company or foreign entity. See Texas Business Organizations Code 1.002
- written: means an expression of words, letters, characters, numbers, symbols, figures, or other textual information that is inscribed on a tangible medium or that is stored in an electronic or other medium that is retrievable in a perceivable form. See Texas Business Organizations Code 1.002