Tex.
Bus. Orgs. Code Section 3.007
Supplemental Provisions Required in Certificate of Formation of For-profit or Professional Corporation
(a)
In addition to the information required by Section 3.005 (Certificate of Formation), the certificate of formation of a for-profit or professional corporation must state:(1)
the aggregate number of shares the corporation is authorized to issue;(2)
if the shares the corporation is authorized to issue consist of one class of shares only, the par value of each share or a statement that each share is without par value;(3)
if the corporation is to be managed by a board of directors, the number of directors constituting the initial board of directors and the name and address of each person who will serve as director until the first annual meeting of shareholders and until a successor is elected and qualified; and(4)
if the corporation is to be managed pursuant to a shareholders’ agreement in a manner other than by a board of directors, the name and address of each person who will perform the functions required by this code to be performed by the initial board of directors.(b)
If the shares a for-profit or professional corporation is authorized to issue consist of more than one class of shares, the certificate of formation of the corporation must, with respect to each class, state:(1)
the designation of the class;(2)
the aggregate number of shares in the class;(3)
the par value of each share or a statement that each share is without par value;(4)
the preferences, limitations, and relative rights of the shares; and(5)
if the shares in a class the corporation is authorized to issue consist of more than one series, the following with respect to each series:(A)
the designation of the series;(B)
the aggregate number of shares in the series;(C)
any preferences, limitations, and relative rights of the shares to the extent provided in the certificate of formation; and(D)
any authority vested in the board of directors to establish the series and set and determine the preferences, limitations, and relative rights of the series.(c)
If the shareholders of a for-profit or professional corporation are to have a preemptive right or cumulative voting right, the certificate of formation of the corporation must comply with Section 21.203 (No Statutory Preemptive Right Unless Provided by Certificate of Formation) or 21.360 (No Cumulative Voting Right Unless Authorized), as appropriate.(d)
Notwithstanding Section 2.008 (Nonprofit Corporations), a for-profit corporation may include one or more social purposes in addition to the purpose or purposes required to be stated in the corporation’s certificate of formation by Section 3.005 (Certificate of Formation)(a)(3). The corporation may also include in the certificate of formation a provision that the board of directors and officers of the corporation shall consider any social purpose specified in the certificate of formation in discharging the duties of directors or officers under this code or otherwise.(e)
Notwithstanding Section 2.008 (Nonprofit Corporations), instead of including in its certificate of formation or amending its certificate of formation to include one or more social purposes as provided by Subsection (d), a for-profit corporation may elect to be a public benefit corporation governed by Subchapter S (Law Applicable to Public Benefit Corporations; Formation), Chapter 21 (For-profit Corporations), by including in its initially filed certificate of formation, or, subject to Section 21.954 (Certain Amendments, Mergers, Exchanges, and Conversions; Voter Approval Required), by amending its certificate of formation to include:(1)
one or more specific public benefits, as defined by Section 21.952 (Definitions), to be promoted by the corporation; and(2)
instead of the statement required by Section 3.005 (Certificate of Formation)(a)(2), a statement that the filing entity is a for-profit corporation electing to be a public benefit corporation.
Source:
Section 3.007 — Supplemental Provisions Required in Certificate of Formation of For-profit or Professional Corporation, https://statutes.capitol.texas.gov/Docs/BO/htm/BO.3.htm#3.007 (accessed Apr. 13, 2024).
