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Tex. Business Organizations Code § 21.560

DISCONTINUANCE OR SETTLEMENT

Texas · Texas Business Organizations Code · Status: effective

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Tex. Business Organizations Code § 21.560, DISCONTINUANCE OR SETTLEMENT, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/583576
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(a) A derivative proceeding may not be discontinued or settled without court approval. (b) The court shall direct that notice be given to the affected shareholders if the court determines that a proposed discontinuance or settlement may substantially affect the interests of other shareholders.