89th Legislature, Regular Session
HB 988
Relating to the duty of the board of directors of a corporation to maximize the value of the corporation's shares.
Introduced
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- Passed House
- Passed Senate
- To Governor
- Became Law
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By: Harrison H.B. No. 988 A BILL TO BE ENTITLED AN ACT relating to the duty of the board of directors of a corporation to maximize the value of the corporation's shares. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 21.401, Business Organizations Code, is amended by adding Subsection (f) to read as follows: (f) Notwithstanding any other law, in discharging the duties of a director, the director shall act to maximize the value of the corporation's shares. It is considered a breach of the director's fiduciary duty if the director prioritizes another consideration over the maximization of the value of the