Texas Special District Local Laws Code 3503.112 – Nonprofit Corporations and Limited Liability Companies
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(a) The authority may authorize by resolution the creation of a nonprofit corporation under the Business Organizations Code to undertake on behalf of the authority a project described by § 3503.003 or carry out any other purpose described by that section on the authority’s behalf.
(a-1) After the creation of a nonprofit corporation under Subsection (a), the authority may authorize by resolution:
(1) the creation of a limited liability company under the Business Organizations Code for the purposes described by Subsection (a); and
(2) the designation of the nonprofit corporation described by Subsection (a) to participate as a member of the company.
Terms Used In Texas Special District Local Laws Code 3503.112
- 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.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(b) The board shall appoint the board of directors of each nonprofit corporation or limited liability company created under this section. A board member is not required to reside in the authority.
(c) A board member or employee of the authority may simultaneously serve as a member of the board of directors of a nonprofit corporation or limited liability company created under this section. A person serving as a board member of the authority and of a nonprofit corporation or limited liability company created under this section may participate in all votes relating to the business of the authority, corporation, or company.
(d) A nonprofit corporation or limited liability company created under this section may not exercise the power of eminent domain.
(e) A nonprofit corporation or limited liability company created under this section is subject to Chapters 551 and 552, Government Code.