Texas Codes
Tex. Bus. Orgs. Code § 11.404 (2026)
Appointment Of Receiver To Rehabilitate Domestic Entity
✓ current as of May 2026
Find cases:
SyfertCases citing this section
TX-LEGstatutes.capitol.texas.gov
Justiaon Justia
CornellLII Search
CasesGoogle Scholar
Sec. 11.404. APPOINTMENT OF RECEIVER TO REHABILITATE DOMESTIC ENTITY. (a) Subject to Subsection (b), a court that has jurisdiction over the property and business of a domestic entity under Section 11.402(b) may appoint a receiver for the entity's property and business if:
(1) in an action by an owner or member of the domestic entity, it is established that:
(A) the entity is insolvent or in imminent danger of insolvency;
(B) the governing persons of the entity are deadlocked in the management of the entity's affairs, the owners or members of the entity are unable to break the deadlock, and irreparable injury to the entity is being suffered or is threatened because of the deadlock;
(C) the actions of the governing persons of the entity are illegal, oppressive, or fraudulent;
(D) the property of the entity is being misapplied or wasted; or
(E) with respect to a for-profit corporation, the shareholders of the entity are deadlocked in voting power and have failed, for a period of at least two years, to elect successors to the governing persons of the entity whose terms have expired or would have expired on the election and qualification of their successors;
(2) in an action by a creditor of the domestic entity, it is established that:
(A) the entity is insolvent, the claim of the creditor has been reduced to judgment, and an execution on the judgment was returned unsatisfied; or
(B) the entity is insolvent and has admitted in writing that the claim of the creditor is due and owing; or
(3) in an action other than an action described by Subdivision (1) or (2), courts of equity have traditionally appointed a receiver.
(b) A court may appoint a receiver under Subsection (a) only if:
(1) circumstances exist that are considered by the court to necessitate the appointment of a receiver to conserve the property and business of the domestic entity and avoid damage to interested parties;
(2) all other requirements of law are complied with; and
(3) the court determines that all other available legal and equitable remedies, including the appointment of a receiver for specific property of the domestic entity under Section 11.402(a), are inadequate.
(c) If the condition necessitating the appointment of a receiver under this section is remedied, the receivership shall be terminated immediately, the management of the domestic entity shall be restored to its managerial officials, and the receiver shall redeliver to the domestic entity all of its property remaining in receivership.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 139 (S.B. 748), Sec. 20, eff. September 1, 2011.
Notes of Decisions
Cited in 22
cases (6 in the last 5 years), 2010–2025 · leading case: Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014).
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
Est. of Price, 528 S.W.3d 591 (Tex. App. 2017). “" (emphasis added)); Tex Bus. Org. Code Ann. § 11.404(b) (West 2010) ("A court may appoint a receiver [to rehabilitate a do *594 mestic entity] only if: .”
Steven Spiritas, Individually & as Tr. of the Spiritas SF 1999 Trust, Spiritas Ranch Enter., LLP, & J. Spiritas Land & Cattle Co. v. Susan Davidoff, Individually & as Tr. of the Spiritas SC 1999 Trust, 459 S.W.3d 224 (Tex. App. 2015). “See Tex. Bus. Orgs. Code Ann. § 11.404 . Finally, we address section 11.”
Herring Bancorp, Inc. v. Mikkelsen, 529 S.W.3d 216 (Tex. App. 2017). “See also Tex. Bus. Orgs. Code Ann. § 11.404 (West 2012).”
Yaghoub \Jacob\" Kohannim v. Parvaneh Katoli", 440 S.W.3d 798 (Tex. App. 2013). “404 indicates that an oppression action can be directed at the directors or “those in control” of the entity.”
Four Seasons Equip., Inc. v. White (In Re White), 429 B.R. 201 (Bankr. S.D. Tex. 2010). “Tex. Bus. ORg.Code § 11.404(b). The Texas legislature has declared that a liquidating receivership should be imposed “only if .”
William H. Scurlock v. John M. Hubbard (Tex. App. 2015). “Tab 1 Selected Texas Rules and Statutes Tex. Bus. Orgs. Code Ann. §§11.404 , 21.218, 21.”
Ovation Fin. Holdings 5 LLC v. G.E.T. Mktg., LLC PSW Real Est., LLC & Stapleton Grp. (Tex. App. 2024). “” TEX. BUS. ORGS. CODE ANN. § 11.404(a), the legislature merely allowed the court to place a receiver in the shoes of the insolvent entity.”
Hansen v. African Contract Solutions Inc (N.D. Tex. 2020). “15 TEX. BUS. ORGS. CODE § 11.404(b)(2). Additionally, before appointing a receiver, the state court must also determine that “circumstances exist that are considered by the court to necessitate the appointment of a receiver to conserve the property and business of the domestic…”
Lauro Chapa SR., Scorpion Expl. & Prod., INC., Pintamor, LTD., Piedras Pintas Ranch, LTD., Scorpion Drilling, INC., Scorpion Operating, INC., Scorpion Well Serv., INC., & Chapco, INC. v. Lauro Chapa JR. (Tex. App. 2012). “TEX. BUS. ORGS. CODE ANN. §§ 11.404, 11.405 (West 2012).”
Wes Gilbreath, Jr., Stacey Gilbreath Powell, Elliot Gilbreath, & Mark Ritter SignAd, Ltd., SignAd GP, LLC, Ben Nevis West, Ltd., Culcreuch West, LLC, Big Signs & Leasing 1, Ltd., Big Signs & Leasing 2, Ltd., Big Signs & Leasing 3, Ltd. El Al v. Lisa R. Gilbreath Horan, Individually & as Tr. of the Lisa Gilbreath Horan 2001 Irrevocable Trust (Tex. App. 2023). “TEX. BUS. ORGS. CODE § 11.404. Relevant to this appeal, Section 11.”
William H. Scurlock v. John M. Hubbard (Tex. App. 2015). “l5 , 16 Tex. R. Civ. Proc. 684 ...................”
— Tex. Bus. Orgs. Code § 11.404(A)(1)(C) — 2 cases
— Tex. Bus. Orgs. Code § 11.404(a) — 2 cases
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
Ovation Fin. Holdings 5 LLC v. G.E.T. Mktg., LLC PSW Real Est., LLC & Stapleton Grp. (Tex. App. 2024). “” TEX. BUS. ORGS. CODE ANN. § 11.404(a), the legislature merely allowed the court to place a receiver in the shoes of the insolvent entity.”
— Tex. Bus. Orgs. Code § 11.404(a)(1) — 2 cases
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
Lauro Chapa SR., Scorpion Expl. & Prod., INC., Pintamor, LTD., Piedras Pintas Ranch, LTD., Scorpion Drilling, INC., Scorpion Operating, INC., Scorpion Well Serv., INC., & Chapco, INC. v. Lauro Chapa JR. (Tex. App. 2012). “TEX. BUS. ORGS. CODE ANN. §§ 11.404, 11.405 (West 2012).”
— Tex. Bus. Orgs. Code § 11.404(a)(1)(A) — 4 cases
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
Ovation Fin. Holdings 5 LLC v. G.E.T. Mktg., LLC PSW Real Est., LLC & Stapleton Grp. (Tex. App. 2024). “” TEX. BUS. ORGS. CODE ANN. § 11.404(a), the legislature merely allowed the court to place a receiver in the shoes of the insolvent entity.”
Hillwood Inv. Props. III, Ltd v. Radical Mavericks Mgmt., LLC (Tex. App. 2014).
Justin Lane v. Thomas Derwood Lane, Glyndia Faye Lane, Jason Lane, Rachel Lane, & Matthew Lane (Tex. App. 2012).
— Tex. Bus. Orgs. Code § 11.404(a)(1)(C) — 1 case
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
— Tex. Bus. Orgs. Code § 11.404(a)(1)(c) — 2 cases
Wes Gilbreath, Jr., Stacey Gilbreath Powell, Elliot Gilbreath, & Mark Ritter SignAd, Ltd., SignAd GP, LLC, Ben Nevis West, Ltd., Culcreuch West, LLC, Big Signs & Leasing 1, Ltd., Big Signs & Leasing 2, Ltd., Big Signs & Leasing 3, Ltd. El Al v. Lisa R. Gilbreath Horan, Individually & as Tr. of the Lisa Gilbreath Horan 2001 Irrevocable Trust (Tex. App. 2023). “TEX. BUS. ORGS. CODE § 11.404. Relevant to this appeal, Section 11.”
— Tex. Bus. Orgs. Code § 11.404(a)(3) — 1 case
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
— Tex. Bus. Orgs. Code § 11.404(a)(l)(A) — 1 case
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
— Tex. Bus. Orgs. Code § 11.404(b) — 5 cases
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
Est. of Price, 528 S.W.3d 591 (Tex. App. 2017). “" (emphasis added)); Tex Bus. Org. Code Ann. § 11.404(b) (West 2010) ("A court may appoint a receiver [to rehabilitate a do *594 mestic entity] only if: .”
Four Seasons Equip., Inc. v. White (In Re White), 429 B.R. 201 (Bankr. S.D. Tex. 2010). “Tex. Bus. ORg.Code § 11.404(b). The Texas legislature has declared that a liquidating receivership should be imposed “only if .”
Lauro Chapa SR., Scorpion Expl. & Prod., INC., Pintamor, LTD., Piedras Pintas Ranch, LTD., Scorpion Drilling, INC., Scorpion Operating, INC., Scorpion Well Serv., INC., & Chapco, INC. v. Lauro Chapa JR. (Tex. App. 2012). “TEX. BUS. ORGS. CODE ANN. §§ 11.404, 11.405 (West 2012).”
Natin Paul WC 1st & Trinity, LP WC 1st & Trinity, GP, LLC WC 3rd & Cong., LP & WC 3rd & Cong., GP, LLC v. the Roy F. & JoAnn Cole Mitte Found. (Tex. App. 2023).
— Tex. Bus. Orgs. Code § 11.404(b)(1) — 2 cases
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
Ovation Fin. Holdings 5 LLC v. G.E.T. Mktg., LLC PSW Real Est., LLC & Stapleton Grp. (Tex. App. 2024). “” TEX. BUS. ORGS. CODE ANN. § 11.404(a), the legislature merely allowed the court to place a receiver in the shoes of the insolvent entity.”
— Tex. Bus. Orgs. Code § 11.404(b)(2) — 2 cases
Hansen v. African Contract Solutions Inc (N.D. Tex. 2020). “15 TEX. BUS. ORGS. CODE § 11.404(b)(2). Additionally, before appointing a receiver, the state court must also determine that “circumstances exist that are considered by the court to necessitate the appointment of a receiver to conserve the property and business of the domestic…”
Ovation Fin. Holdings 5 LLC v. G.E.T. Mktg., LLC PSW Real Est., LLC & Stapleton Grp. (Tex. App. 2024). “” TEX. BUS. ORGS. CODE ANN. § 11.404(a), the legislature merely allowed the court to place a receiver in the shoes of the insolvent entity.”
— Tex. Bus. Orgs. Code § 11.404(b)(3) — 2 cases
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
— Tex. Bus. Orgs. Code § 11.404(b)(l) — 1 case
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
— Tex. Bus. Orgs. Code § 11.404(c) — 1 case
Lee C. Ritchie v. Ann Caldwell Rupe, as Tr. for the Dallas Gordon Rupe, III 1995 Fam. Trust, 443 S.W.3d 856 (Tex. 2014). “6 See Tex. Bus. Orgs. Code § 11.404. Although Rupe sought appointment of a receiver to liquidate RIC rather than rehabilitate it, 7 only sought that remedy as an alternative to other remedies, did not obtain that relief in the judgment, and does not request that relief on…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.