Tex.
Bus. Orgs. Code Section 153.404
Determination by Independent Persons
(a)
A determination of how to proceed on allegations made in a demand or petition relating to a derivative proceeding must be made by an affirmative vote of the majority of:(1)
the independent and disinterested general partners of the limited partnership, whether one or more, even if the independent and disinterested general partners are not a majority of the general partners of the limited partnership;(2)
a committee consisting of one or more independent and disinterested general partners appointed by a majority of one or more independent and disinterested general partners of the limited partnership, even if the appointing independent and disinterested general partners are not a majority of the general partners of the limited partnership; or(3)
a panel of one or more independent and disinterested individuals appointed by the court on a motion by the limited partnership listing the names of the individuals to be appointed and stating that, to the best of the limited partnership’s knowledge, the individuals to be appointed are disinterested and qualified to make the determinations contemplated by Section 153.408 (Dismissal of Derivative Proceeding).(b)
An entity to which this subsection applies is independent and disinterested under this section only if its decision with respect to the limited partnership’s derivative proceeding is made by a majority of its governing persons who are independent and disinterested with respect to that derivative proceeding, even if those governing persons are not a majority of its governing persons. This subsection applies to an entity that is:(1)
a general partner of the limited partnership; or(2)
directly, or indirectly through one or more other entities, a governing person of that general partner.(c)
The court shall appoint a panel under Subsection (a)(3) if the court finds that the individuals recommended by the limited partnership are independent and disinterested and are otherwise qualified with respect to expertise, experience, independent judgment, and other factors considered appropriate by the court under the circumstances to make the determinations. An individual appointed by the court to a panel under this section may not be held liable to the limited partnership or the limited partnership’s partners for an action taken or omission made by the individual in that capacity, except for an act or omission constituting fraud or wilful misconduct.
Source:
Section 153.404 — Determination by Independent Persons, https://statutes.capitol.texas.gov/Docs/BO/htm/BO.153.htm#153.404 (accessed Jun. 5, 2024).
