Texas Business Organizations Code 6.103 – Record Date for Suspended Distributions
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(a) In this section, “distribution” includes a distribution that:
(1) was payable to an owner or member but not paid and was held in suspension by the entity making the distribution; or
(2) is paid or delivered by the entity making the distribution into an escrow account or to a trustee or custodian.
(b) A distribution made by a domestic entity shall be payable by the entity, or an escrow agent, trustee, or custodian of the distribution, to the owner or member determined on the record date for the distribution as provided by this subchapter.
Terms Used In Texas Business Organizations Code 6.103
- Contract: A legal written agreement that becomes binding when signed.
- Domestic: means , with respect to an entity, that the entity is formed under this code or the entity's internal affairs are governed by this code. See Texas Business Organizations Code 1.002
- Entity: means a domestic entity or foreign entity. See Texas Business Organizations Code 1.002
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Law: means , unless the context requires otherwise, both statutory and common law. 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 - Trustee: A person or institution holding and administering property in trust.
(c) The right to a distribution under this section may be transferred by contract, by operation of law, or under the laws of descent and distribution.