Sec. 21.560. DISCONTINUANCE OR SETTLEMENT. (a) A derivative proceeding may not be discontinued or settled without court approval.
(b) The court shall direct that notice be given to the affected shareholders if the court determines that a proposed discontinuance or settlement may substantially affect the interests of other shareholders.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Structure Texas Statutes
Chapter 21 - For-Profit Corporations
Subchapter L. Derivative Proceedings
Section 21.552. Standing to Bring Proceeding
Section 21.554. Determination by Directors or Independent Persons
Section 21.555. Stay of Proceeding
Section 21.557. Tolling of Statute of Limitations
Section 21.558. Dismissal of Derivative Proceeding
Section 21.559. Allegations After Demand Rejected
Section 21.560. Discontinuance or Settlement
Section 21.561. Payment of Expenses