United States · Texas

Directors' resolutions under the Texas Business Organizations Code

How a Texas corporation's board passes resolutions, by meeting or under TBOC § 21.415, with interested-director rules under § 21.418.

Governing statute
Texas Business Organizations Code, Tex. Bus. Orgs. Code § 1.001 et seq.
§ 6.201Action by written consent in lieu of meeting
§ 21.415Board of directors action without meeting
§ 21.418Interested director transactions
At a glance
  • TBOC § 6.201 (general) and § 21.415 (corporate-specific) permit unanimous written consent
  • Every director entitled to vote must sign for the consent to be effective
  • Conflict-of-interest transactions governed by § 21.418
  • Telephone meetings permitted under § 21.412
  • Texas permits the certificate of formation or bylaws to modify the consent mechanism

TBOC § 21.415 written consent

The Texas Business Organizations Code permits the board to act by unanimous written consent. Every director entitled to vote on the matter must sign. The mechanism is consistent with the Model Business Corporation Act on which the TBOC is based.

Interested-director transactions under § 21.418

Section 21.418 provides safe harbors for interested-director transactions, similar to Delaware § 144: disclosure plus majority disinterested director approval, shareholder ratification, or demonstrated fairness.

Texas-specific governance flexibility

TBOC permits the certificate of formation or bylaws to modify many default rules, including the consent mechanism. A Texas corporation can, by certificate or bylaws, require a meeting for certain decisions or impose higher consent thresholds. Counsel should check the certificate and bylaws before relying on the default mechanism.

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