By: Estes  S.B. No. 1568
         (In the Senate - Filed March 11, 2011; March 23, 2011, read
  first time and referred to Committee on Business and Commerce;
  April 13, 2011, reported favorably by the following vote:  Yeas 9,
  Nays 0; April 13, 2011, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to shareholder standing after a merger.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 21.552, Business Organizations Code, is
  amended to read as follows:
         Sec. 21.552.  STANDING TO BRING PROCEEDING.  [(a)]  A
  shareholder may not institute or maintain a derivative proceeding
  unless:
               (1)  the shareholder:
                     (A)  was a shareholder of the corporation at the
  time of the act or omission complained of; or
                     (B)  became a shareholder by operation of law from
  a person that was a shareholder at the time of the act or omission
  complained of; and
               (2)  the shareholder fairly and adequately represents
  the interests of the corporation in enforcing the right of the
  corporation.
         [(b)     To the extent a shareholder of a corporation has
  standing to institute or maintain a derivative proceeding on behalf
  of the corporation immediately before a merger, Subchapter J or
  Chapter 10 may not be construed to limit or terminate the
  shareholder's standing after the merger.]
         SECTION 2.  This Act takes effect September 1, 2011.
 
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