Tex. Codes » Business Organizations Code · TITLE 2. CORPORATIONS · CHAPTER 21. FOR-PROFIT CORPORATIONS
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Tex. Bus. Orgs. Code § 21.224 (2026)

Preemption Of Liability

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Sec. 21.224. PREEMPTION OF LIABILITY. The liability of a holder, beneficial owner, or subscriber of shares of a corporation, or any affiliate of such a holder, owner, or subscriber or of the corporation, for an obligation that is limited by Section 21.223 is exclusive and preempts any other liability imposed for that obligation under common law or otherwise.

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 84 (S.B. 1442), Sec. 34, eff. September 1, 2009.

Notes of Decisions
Cited in 16 cases (4 in the last 5 years), 2007–2025 · leading case: Hong v. Havey, 551 S.W.3d 875 (Tex. App.—Houston [14th Dist.] 2018).
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Hong v. Havey, 551 S.W.3d 875 (Tex. App.—Houston [14th Dist.] 2018). · cites it 2× “" Tex. Bus. Orgs. Code Ann. § 21.224 . B. Application of Standards Mandy asserts in her first issue that the evidence is legally insufficient to support the jury's "yes" answer in response to Question No.”
Bates Energy Oil & Gas v. Complete Oilfield Servs., 361 F. Supp. 3d 633 (W.D. Tex. 2019). “" TEX. BUS. ORGS. CODE § 21.224. Section 21.”
Spring Street Prt - IV, L.P. v. Douglas Lam, 730 F.3d 427 (5th Cir. 2013). “” Tex. Bus. Orgs.Code § 21.224. Similarly, a member or manager of an LLC “is not liable for a debt, obligation, or liability of a limited liability company, including a debt, obligation, or liability under a judgment, decree, or order of a court,” except to the extent that “the…”
Sparks v. Booth, 232 S.W.3d 853 (Tex. App.—Dallas 2007). “” Tex. Bus. ORGs.Code Ann. § 21.224 (previously codified at Tex.”
TransPecos Banks v. Jodi Strobach, 487 S.W.3d 722 (Tex. App.—El Paso 2016). “Tex. Bus. Orgs. Code Ann. § 21.224 . Therefore, we conclude that the evidence of Strobach’s failure to maintain corporate formalities could not show that Strobach was personally liable to the Bank for the Corporation’s loan obligations.”
Penhollow Custom Homes, LLC v. Kim, 320 S.W.3d 366 (Tex. App.—El Paso 2010). “” Tex.Bus.Orgs.Code Ann. § 21.224; Willis, 199 S.”
Mary Ann Yamin v. Carroll Wayne Conn, L.P, 574 S.W.3d 50 (Tex. App.—Houston [14th Dist.] 2018). “TEX. BUS. ORGS. CODE ANN. § 21.224 (emphasis added).”
Viajes Gerpa, S.A. v. Fazeli, 522 S.W.3d 524 (Tex. App.—Houston [14th Dist.] 2016). “” Tex. Bus. Orgs. Code Ann. § 21.224 (West 2012).”
Doyle v. Kontemporary Builders, Inc., 370 S.W.3d 448 (Tex. App.—Dallas 2012). “” Tex. Bus. Orgs.Code Ann. § 21.224; Willis, 199 S.”
Husky Int'l Elec., Inc. v. Ritz, 513 B.R. 510 (S.D. Tex. 2014). “” Tex. Bus. Org. Code § 21.224. . The Fifth Circuit does not require the creditor to have "reasonably” relied on the representation.”
Greg Mungas v. Odyssey Space Rsch., LLC, No. 14-19-00378-CV (Tex. App.—Houston [14th Dist.] Aug. 5, 2021). “” Tex. Bus. Orgs. Code Ann. § 21.224 . “Generally, alter ego will not apply to disregard the corporate form absent exceptional circumstances.”
Ringer v. Masters Touch Custom Homes LLC, No. 1:21-cv-00705 (W.D. Tex. Aug. 30, 2023). “48, at 16–17 (citing Tex. Bus. Orgs. Code § 21.224)). And, because a claim for misappropriating trust funds under the CTFA sounds in fraud, Defendants argue that any basis for individual liability under the CTFA is “preempted” by the protections set out in the TBOC.”
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