USA- TEXAS | New laws making changes to Business Organizations Code comes into force from Sept 1

A number of Bills of the Texas Government, amending the Texas Business Organizations Code and Texas Business & Commerce Code comes into force on September 1, 2021. In this regard, key bills are summarised hereinbelow:

  • Business Organization Code Omnibus Amendment Package: This bill amends provisions of the Business Organizations Code (Code) relating to domestic entities, corporations, partnerships, and limited liability companies. It contains developments to the capabilities of business entities during an emergency or disaster.
  • Business Purchase – Comptroller Tax Disclosure: This bill states that the comptroller shall provide disclosure to the purchaser of a business for the amount of tax due and such information should be on an affidavit or in an “other form prescribed by the comptroller.”
  • Certificates of Formation – Address: This bill adds an additional requirement for the certificate of formation for a new entity: the initial mailing address of the filing entity must now be known and included.
  • Pandemic Liability Shield: This bill discusses certain prerogatives arising during a pandemic or disaster related to a pandemic.
  • Recovery of Attorney’s Fees in Civil Cases: This bill allows the recovery of fees of attorney in contract disputes to an expanded definition of business organizations—including limited liability companies, partnerships, and nearly every other business entity.

 


*Tanvi Singh, Editorial Assistant has reported this brief.

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