Texas Business Organizations Code 22.362 – Effect of Forfeiture
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(a) Unless the right of the corporation to conduct affairs in this state is revived under § 22.363:
(1) the corporation may not maintain an action, suit, or proceeding in a court of this state; and
(2) a successor or assignee of the corporation may not maintain an action, suit, or proceeding in a court of this state on a right, claim, or demand arising from the conduct of affairs by the corporation in this state.
(b) This section does not affect the right of an assignee of the corporation as:
(1) the holder in due course of a negotiable promissory note, check, or bill of exchange; or
(2) the bona fide purchaser for value of a warehouse receipt, stock certificate, or other instrument negotiable by law.
Terms Used In Texas Business Organizations Code 22.362
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means an entity governed as a corporation under Title 2 or 7. See Texas Business Organizations Code 1.002
- Law: means , unless the context requires otherwise, both statutory and common law. See Texas Business Organizations Code 1.002
(c) The forfeiture of the right to conduct affairs in this state does not:
(1) impair the validity of a contract or act of the corporation; or
(2) prevent the corporation from defending an action, suit, or proceeding in a court of this state.