1-1 AN ACT
1-2 relating to the liability of an officer of a nonprofit corporation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The Texas Non-Profit Corporation Act (Article
1-5 1396-1.01 et seq., Vernon's Texas Civil Statutes) is amended by
1-6 adding Article 2.22 to read as follows:
1-7 Art. 2.22. OFFICER LIABILITY. (a) An officer is not liable
1-8 to the corporation or any other person for an action taken or
1-9 omission made by the officer in the person's capacity as an officer
1-10 unless the officer's conduct was not exercised:
1-11 (1) in good faith;
1-12 (2) with ordinary care; and
1-13 (3) in a manner the officer reasonably believes to be
1-14 in the best interest of the corporation.
1-15 (b) This article shall not affect the liability of the
1-16 corporation for an act or omission of the officer.
1-17 SECTION 2. This Act takes effect September 1, 2001, and
1-18 applies only to an action filed on or after that date. An action
1-19 filed before the effective date of this Act is governed by the law
1-20 in effect when the action was filed, and the former law is
1-21 continued in effect for that purpose.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 731 passed the Senate on
April 19, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 731 passed the House on
May 18, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor