79R2205 CLG-D
By: Alonzo H.B. No. 1620
A BILL TO BE ENTITLED
AN ACT
relating to the award of attorney's fees in an action against an
officer or director of a nonprofit corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Texas Non-Profit Corporation Act (Article
1396-1.01 et seq., Vernon's Texas Civil Statutes) is amended by
adding Article 2.22B to read as follows:
Art. 2.22B. LIABILITY FOR ATTORNEY'S FEES. The court shall
award reasonable attorney's fees to a person who prevails in an
action against an officer or director of a corporation for an act or
omission occurring in the person's capacity as an officer or
director.
SECTION 2. Subchapter E, Chapter 22, Business Organizations
Code, is amended by adding Section 22.236 to read as follows:
Sec. 22.236. LIABILITY FOR ATTORNEY'S FEES. The court
shall award reasonable attorney's fees to a person who prevails in
an action against an officer or director of a corporation for an act
or omission occurring in the person's capacity as an officer or
director.
SECTION 3. Article 2.22B, Texas Non-Profit Corporation Act
(Article 1396-2.22B, Vernon's Texas Civil Statutes), as added by
this Act, applies only to an action filed on or after the effective
date of this Act. An action filed before the effective date of this
Act is governed by the law in effect on the date the action was
filed, and the former law is continued in effect for that purpose.
SECTION 4. Section 22.236, Business Organizations Code, as
added by Section 2 of this Act, applies only to an action filed on or
after the effective date of that section. An action filed before
that date is governed by the law in effect on the date the action was
filed, and the former law is continued in effect for that purpose.
SECTION 5. Section 2 of this Act takes effect January 1,
2006.
SECTION 6. Except as provided by Section 5, this Act takes
effect immediately if it receives a vote of two-thirds of all the
members elected to each house, as provided by Section 39, Article
III, Texas Constitution. If this Act does not receive the vote
necessary for immediate effect, this Act takes effect September 1,
2005.