Tex.
Bus. Orgs. Code Section 153.408
Dismissal of Derivative Proceeding
(a)
A court, sitting in equity as the finder of fact, shall dismiss a derivative proceeding on a motion by the limited partnership if the person or group of persons described by Section 153.404 (Determination by Independent Persons) determines in good faith, after conducting a reasonable inquiry and based on factors the person or group considers appropriate under the circumstances, that continuation of the derivative proceeding is not in the best interests of the limited partnership.(b)
In determining whether the requirements of Subsection (a) have been met, the burden of proof shall be on:(1)
the plaintiff limited partner if:(A)
the applicable person or persons making the determination under Section 153.404 (Determination by Independent Persons)(a)(1) or (2) are independent and disinterested at the time the determination is made;(B)
the determination is made by a panel of one or more independent and disinterested individuals appointed under Section 153.404 (Determination by Independent Persons)(a)(3); or(C)
the limited partnership presents prima facie evidence that demonstrates that the applicable person or persons making the determination under Section 153.404 (Determination by Independent Persons)(a) are independent and disinterested; or(2)
the limited partnership in any other circumstance.
Source:
Section 153.408 — Dismissal of Derivative Proceeding, https://statutes.capitol.texas.gov/Docs/BO/htm/BO.153.htm#153.408 (accessed Jun. 5, 2024).
