HB 988

AN ACT relating to the duty of the board of directors of a corporation to

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Committee

Not yet assigned

Fiscal Note

Not available

What This Bill Does

relating to the duty of the board of directors of a corporation to

Bill Text

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
SECTION 2.  This Act applies only to an action taken by the
board of directors of a corporation on or after the effective date
SECTION 3.  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, 2025.

Bill History

filed

Bill filed: AN ACT relating to the duty of the board of directors of a corporation to

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