Texas Government Code
Sec. § 2270.0204
Actions Relating to Listed Company Engaged in Active Business Operations


(a)

For each listed company identified under Section 2270.0202 (Identification of Investment in Listed Companies) that is engaged in scrutinized active business operations, the investing entity shall send a written notice informing the company of its listed company status and warning the company that it may become subject to divestment by investing entities.

(b)

The notice shall offer the company the opportunity to clarify its Sudan-related, Iran-related, or designated foreign terrorist organization-related activities, as applicable, and shall encourage the company, not later than the 90th day after the date the company receives notice under this section, to either cease all scrutinized business operations as described by Sections 2270.0052 (Scrutinized Business Operations in Sudan), 2270.0102 (Scrutinized Business Operations in Iran), and 2270.0152 (Scrutinized Business Operations With Designated Foreign Terrorist Organization), or convert such operations to inactive business operations in order to avoid qualifying for divestment by investing entities.

(c)

If, during the time provided by Subsection (b), the company ceases scrutinized business operations described by that subsection, the comptroller shall remove the company from the list of scrutinized companies and this chapter will no longer apply to the company unless it resumes scrutinized business operations.

(d)

If, during the time provided by Subsection (b), the company converts its scrutinized active business operations to inactive business operations, the company is subject to all provisions of this chapter relating to inactive business operations.

(e)

If, after the time provided by Subsection (b) expires, the listed company continues to have scrutinized active business operations, the investing entity shall sell, redeem, divest, or withdraw all publicly traded securities of the company, except securities described by Section 2270.0207 (Investments Exempted From Divestment), according to the schedule provided by Section 2270.0206 (Divestment of Assets).
Added by Acts 2007, 80th Leg., R.S., Ch. 1375 (S.B. 247), Sec. 2, eff. January 1, 2008.
Transferred, redesignated and amended from Government Code, Chapter 806 by Acts 2017, 85th Leg., R.S., Ch. 96 (S.B. 253), Sec. 4, eff. May 23, 2017.
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Jun. 7, 2021