Tex.
Bus. Orgs. Code Section 22.501
Definitions
(1)
“Corporate statute,” with respect to an action or filing, means this code, the former Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon’s Texas Civil Statutes), or any predecessor statute of this state that governed the action or the filing.(2)
“Defective corporate act” means:(A)
an election or appointment of directors that is void or voidable due to a failure of authorization; or(B)
any act or transaction purportedly taken by or on behalf of the corporation that is, and at the time the act or transaction was purportedly taken would have been, within the power of a corporation to take under the corporate statute, but is void or voidable due to a failure of authorization.(3)
“District court” means a district court in:(A)
the county in which the corporation’s principal office in this state is located; or(B)
the county in which the corporation’s registered office in this state is located, if the corporation does not have a principal office in this state.(4)
“Failure of authorization” means:(A)
the failure to authorize or effect an act or transaction in compliance with the provisions of the corporate statute, the governing documents of the corporation, a corporate resolution, or any plan or agreement to which the corporation is a party, if and to the extent the failure would render the act or transaction void or voidable; or(B)
the failure of the board of directors or an officer of the corporation to authorize or approve an act or transaction taken by or on behalf of the corporation that required the prior authorization or approval of the board of directors or the officer.(5)
“Time of the defective corporate act” means the date and time the defective corporate act was purported to have been taken or the approximate date and time, if the exact date is unknown.(6)
“Validation effective time” or “effective time of the validation,” with respect to any defective corporate act ratified under this subchapter, means the latest of:(A)
the time at which the defective corporate act submitted to the members for approval under Section 22.505 (Approval of Ratified Defective Corporate Act by Members with Voting Rights Required; Exception) is approved by the members or, if the corporation has no members or has no members with voting rights or if no member approval is required, the time at which the board of directors adopts the resolutions required by Section 22.503 (Ratification of Defective Corporate Act; Adoption of Resolutions);(B)
if a certificate of validation is not required to be filed under Section 22.508 (Certificate of Validation), the time, if any, specified by the board of directors or the members in the resolutions adopted under Section 22.503 (Ratification of Defective Corporate Act; Adoption of Resolutions), which may not precede the time at which the resolutions are adopted; or(C)
the time at which any certificate of validation filed under Section 22.508 (Certificate of Validation) takes effect in accordance with Chapter 4 (Partnerships).
Source:
Section 22.501 — Definitions, https://statutes.capitol.texas.gov/Docs/BO/htm/BO.22.htm#22.501 (accessed Jun. 5, 2024).
