Texas Special District Local Laws Code 1043.113 – Nonprofit Corporation
(a) The district may become a member of a nonprofit corporation or enter into an agreement with a nonprofit corporation to serve the purposes of this chapter. Under an agreement with a nonprofit corporation, the district may require that:
(1) the nonprofit corporation grant the district the power to appoint one or more members of the corporation’s board of directors;
(2) the nonprofit corporation obtain the district’s consent before changing the corporation’s articles of incorporation or bylaws or before taking other action; and
(3) the district receive all or part of the net assets of the nonprofit corporation on the corporation’s dissolution, merger, or consolidation.
(b) The district is not liable for any debt, obligation, or other liability of the nonprofit corporation.
Terms Used In Texas Special District Local Laws Code 1043.113
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(c) This section does not affect the district’s authority to make payments to or otherwise provide money to the nonprofit corporation.