Texas Business Organizations Code 22.501 – Definitions
Terms Used In Texas Business Organizations Code 22.501
- 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
- Governing documents: means :
(A) in the case of a domestic entity:
(i) the certificate of formation for a domestic filing entity or the document or agreement under which a domestic nonfiling entity is formed; and
(ii) the other documents or agreements adopted by the entity under this code to govern the formation or the internal affairs of the entity; or
(B) in the case of a foreign entity, the instruments, documents, or agreements adopted under the law of its jurisdiction of formation to govern the formation or the internal affairs of the entity. 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 - Officer: means an individual elected, appointed, or designated as an officer of an entity by the entity's governing authority or under the entity's governing documents. See Texas Business Organizations Code 1.002
- Statute: A law passed by a legislature.
In this subchapter:
(1) “Corporate statute,” with respect to an action or filing, means this code, the former Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon’s Texas Civil Statutes), or any predecessor statute of this state that governed the action or the filing.
(2) “Defective corporate act” means:
(A) an election or appointment of directors that is void or voidable due to a failure of authorization; or
(B) any act or transaction purportedly taken by or on behalf of the corporation that is, and at the time the act or transaction was purportedly taken would have been, within the power of a corporation to take under the corporate statute, but is void or voidable due to a failure of authorization.
(3) “District court” means a district court in:
(A) the county in which the corporation’s principal office in this state is located; or
(B) the county in which the corporation’s registered office in this state is located, if the corporation does not have a principal office in this state.
(4) “Failure of authorization” means:
(A) the failure to authorize or effect an act or transaction in compliance with the provisions of the corporate statute, the governing documents of the corporation, a corporate resolution, or any plan or agreement to which the corporation is a party, if and to the extent the failure would render the act or transaction void or voidable; or
(B) the failure of the board of directors or an officer of the corporation to authorize or approve an act or transaction taken by or on behalf of the corporation that required the prior authorization or approval of the board of directors or the officer.
(5) “Time of the defective corporate act” means the date and time the defective corporate act was purported to have been taken or the approximate date and time, if the exact date is unknown.
(6) “Validation effective time” or “effective time of the validation,” with respect to any defective corporate act ratified under this subchapter, means the latest of:
(A) the time at which the defective corporate act submitted to the members for approval under § 22.505 is approved by the members or, if the corporation has no members or has no members with voting rights or if no member approval is required, the time at which the board of directors adopts the resolutions required by § 22.503;
(B) if a certificate of validation is not required to be filed under § 22.508, the time, if any, specified by the board of directors or the members in the resolutions adopted under § 22.503, which may not precede the time at which the resolutions are adopted; or
(C) the time at which any certificate of validation filed under § 22.508 takes effect in accordance with Chapter 4.