Tex. Bus. Org. Code § 2.101

Current through the 87th Legislature (2021) Second Special Session
Section 2.101 - General Powers

Except as otherwise provided by this code, a domestic entity has the same powers as an individual to take action necessary or convenient to carry out its business and affairs. Except as otherwise provided by this code, the powers of a domestic entity include the power to:

(1) sue, be sued, and defend suit in the entity's business name;
(2) have and alter a seal and use the seal or a facsimile of it by impressing, affixing, or reproducing it;
(3) acquire, receive, own, hold, improve, use, and deal in and with property or an interest in property;
(4) sell, convey, mortgage, pledge, lease, exchange, and otherwise dispose of property;
(5) make contracts and guarantees;
(6) incur liabilities, borrow money, issue notes, bonds, or other obligations, which may be convertible into, or include the option to purchase, other securities or ownership interests in the entity, and secure its obligations by mortgaging or pledging its property, franchises, or income;
(7) lend money, invest its funds, and receive and hold property as security for repayment;
(8) acquire its own bonds, debentures, or other evidences of indebtedness or obligations;
(9) acquire its own ownership interests, regardless of whether redeemable, and hold the ownership interests as treasury ownership interests or cancel or dispose of the ownership interests;
(10) be a promoter, organizer, owner, partner, member, associate, or manager of an organization;
(11) acquire, receive, own, hold, vote, use, pledge, and dispose of ownership interests in or securities issued by another person;
(12) conduct its business, locate its offices, and exercise the powers granted by this code to further its purposes, in or out of this state;
(13) lend money to, and otherwise assist, its managerial officials, owners, members, or employees as necessary or appropriate if the loan or assistance reasonably may be expected to benefit, directly or indirectly, the entity;
(14) elect or appoint officers and agents of the entity, establish the length of their terms, define their duties, and fix their compensation;
(15) pay pensions and establish pension plans, pension trusts, profit-sharing plans, bonus plans, and incentive plans for managerial officials, owners, members, or employees or former managerial officials, owners, members, or employees;
(16) indemnify and maintain liability insurance for managerial officials, owners, members, employees, and agents of the entity or the entity's affiliate;
(17) adopt and amend governing documents for managing the affairs of the entity subject to applicable law;
(18) make donations for the public welfare or for a charitable, scientific, or educational purpose;
(19) voluntarily wind up its business and activities and terminate its existence;
(20) transact business or take action that will aid governmental policy;
(21) renounce, in its certificate of formation or by action of its governing authority, an interest or expectancy of the entity in, or an interest or expectancy of the entity in being offered an opportunity to participate in, specified business opportunities or a specified class or category of business opportunities presented to the entity or one or more of its managerial officials or owners; and
(22) take other action necessary or appropriate to further the purposes of the entity.

Tex. Bus. Org. Code § 2.101

Amended by Acts 2007, 80th Leg., R.S., Ch. 688, Sec. 7, eff. September 1, 2007.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by Acts 2005, 79th Leg., Ch. 64, Sec. 5, eff. January 1, 2006.