Tex. Business Organizations Code § 22.362
EFFECT OF FORFEITURE
Texas · Texas Business Organizations Code · Status: effective
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- Citation
- Tex. Business Organizations Code § 22.362, EFFECT OF FORFEITURE, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/583776
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Full text
(a) Unless the right of the corporation to conduct affairs in this state is revived under Section 22.363:
(1) the corporation may not maintain an action, suit, or proceeding in a court of this state; and
(2) a successor or assignee of the corporation may not maintain an action, suit, or proceeding in a court of this state on a right, claim, or demand arising from the conduct of affairs by the corporation in this state.
(b) This section does not affect the right of an assignee of the corporation as:
(1) the holder in due course of a negotiable promissory note, check, or bill of exchange; or
(2) the bona fide purchaser for value of a warehouse receipt, stock certificate, or other instrument negotiable by law.
(c) The forfeiture of the right to conduct affairs in this state does not:
(1) impair the validity of a contract or act of the corporation; or
(2) prevent the corporation from defending an action, suit, or proceeding in a court of this state.