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Tex. Bus. Orgs. Code § 22.235

OFFICER LIABILITY

Applied in 2 court decisions — leading case Hall v. Bean (2013)

Most recently applied in Better Business Bureau of Metropolitan Houston, Inc. v. John Moore Services, Inc. (June 2016)

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff

(a) An officer is not liable to the corporation or any other person for an action taken or omission made by the officer in the person's capacity as an officer unless the officer's conduct was not exercised:

(1) in good faith;

(2) with ordinary care; and

(3) in a manner the officer reasonably believes to be in the best interest of the corporation.

(b) This section shall not affect the liability of the corporation for an act or omission of the officer.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.