Sec. 153.403. DEMAND. (a) A limited partner may not institute a derivative proceeding until the 91st day after the date a written demand is filed with the limited partnership stating with particularity the act, omission, or other matter that is the subject of the claim or challenge and requesting that the limited partnership take suitable action.
(b) The waiting period required by Subsection (a) before a derivative proceeding may be instituted is not required or, if applicable, shall terminate if:
(1) the limited partner has been notified that the demand has been rejected by the limited partnership;
(2) the limited partnership is suffering irreparable injury; or
(3) irreparable injury to the limited partnership would result by waiting for the expiration of the 90-day period.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 899 (H.B. 3603), Sec. 27, eff. September 1, 2019.
Structure Texas Statutes
Chapter 153 - Limited Partnerships
Subchapter I. Derivative Actions
Section 153.402. Standing to Bring Proceeding
Section 153.404. Determination by Independent Persons
Section 153.405. Stay of Proceeding
Section 153.407. Tolling of Statute of Limitations
Section 153.408. Dismissal of Derivative Proceeding
Section 153.409. Allegations After Demand Rejected
Section 153.410. Discontinuance or Settlement
Section 153.411. Payment of Expenses
Section 153.412. Application to Foreign Limited Partnerships