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Bill > HB4794


TX HB4794

TX HB4794
Relating to the burden of proof in certain derivative proceedings.


summary

Introduced
03/10/2023
In Committee
03/22/2023
Crossed Over
Passed
Dead
05/29/2023

Introduced Session

88th Legislature Regular Session

Bill Summary

Relating to the burden of proof in certain derivative proceedings.

AI Summary

This bill amends the Texas Business Organizations Code to state that in a derivative proceeding (a lawsuit brought by a shareholder on behalf of a corporation) alleging an act or omission related to the improper consideration of environmental, social, and governance (ESG) criteria, the burden of proof is on the corporation to prove the act or omission was in the best interest of the corporation. The bill applies only to actions commenced on or after the effective date of September 1, 2023.

Committee Categories

Justice

Sponsors (1)

Last Action

Referred to Judiciary & Civil Jurisprudence (on 03/22/2023)

Bill Topics

Banking, Finance, and Domestic Commerce
  • ‐ Corporate Management
Law, Crime, and Family Issues
  • ‐ Civil Law and Procedure

bill text


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