Bill Text: TX HB4802 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the duty of the board of directors of a corporation to maximize the value of the corporation's shares.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-23 - Referred to Business & Industry [HB4802 Detail]
Download: Texas-2023-HB4802-Introduced.html
By: Harrison | H.B. No. 4802 |
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relating to the duty of the board of directors of a corporation to | ||
maximize the value of the corporation's shares. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 21.401, Business Organizations Code, is | ||
amended by adding Subsection (f) to read as follows: | ||
(f) Notwithstanding any other law, in discharging the | ||
duties of a director, the director shall act to maximize the value | ||
of the corporation's shares. It is considered a breach of the | ||
director's fiduciary duty if the director prioritizes another | ||
consideration over the maximization of the value of the | ||
corporation's shares. | ||
SECTION 2. This Act applies only to an action taken by the | ||
board of directors of a corporation on or after the effective date | ||
of this Act. | ||
SECTION 3. This Act takes effect September 1, 2023. |